The heated debate on whether to rent or buy your home continues. For the record, I don't support or crush any of the two. I just choose to buy my own home so that I feel good about making it comfortable, customizing it, boring holes on the walls, painting it red as I please, taking carpets out when my kids sneeze, etc. But for some people it just isn't in their bigger plan to invest in property and to take care of the daunting management tasks that comes with it. Ironically, those tasks me feel very much in control of my investment. And I choose to see my home that way, as an investment.
But, what brought us into this debate to start with?
From the research that I made in the past, it shows clearly that this debate was politically motivated. A lot of politically backed negativity was given to the choice of renting. The National Association of Real Estate Boards (NAREB), in its “Own Your Home” campaigns re-launched in the mid 1900s, gave negative labels to renters and rental housing (taken from Lands, 2006). Some of the statements associated with renting were:
“Apartment living is detrimental to family life,
Apartment living is detrimental to child development,
Renters are prone to crime,
Renters cause social disorder,
Rental housing brings social disorder to neighborhoods.”
It is only recently that the choice to rent has been looked at objectively and in a positive way. It has now become a choice that families and individuals continue to explore when they take home ownership decisions. The fact is: this is a personal choice led by an individual’s personal goals and objectives. There are financial and non-financial advantages and disadvantages of any real estate investment. Be it your own home use or as another type of investment.
My personal Choice remains firm from 2001
I still choose to buy my own home, even in the current deflation situation. In the long run, buying your own home has higher financial benefits in comparison with renting. But if one is thinking of a home for a short term, renting may be best. Prices may go further down, but who cares when they hold into their investment for long. Prices should go up eventually, right? The current low prices are motivation enough to buy, I think.
Having said that, managing the property and all the costs and responsibilities that come with, is no child’s play. One has to really love it to do it well. Things go wrong and most often they do so at the same time. Broken pipes, tenants’ mess, missed payments, vacancies, etc, should be budgeted for. Just think about your own goals. And if you don’t own your own home, I take it you are investing and saving elsewhere. You should.
Your choice to buy or rent your home is none of anyone's business.
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