Home ownership accrues a number of conveniences over renting. The paper advances the position that it is better to own rather than rent housing. The paper shall examine the advantages and disadvantages in both home ownership and renting. However, from the onset, it should be appreciated that it is better to own rather than rent housing premises.
Home ownership comes with the availability of collateral. As a house owner, one is qualifies for credit from financial institutions with the house as collateral. In addition, home ownership frees an individual from monthly expenses in form of rent. As a house owner, one does not have to incur recurrent costs as he or she pays no rental costs. Home ownership equally gives one absolute ownership and enjoyment of property to the extent that is permitted by the law. The owner of the house can elect to use the property in any way that is permitted and entertained by the law and consistent with the traditional practices of the market. Some of the uses at the disposal of the home owner include renting, leasing, occupation, business premises and or for speculative purposes in the market.
In the same breadth, home ownership comes with a number of disadvantages. The element of permanency limits the options of the owner in matters of relocation. The best option in cases of intended relocation often is to sale the property. However, immediate purchasers and good bargain options may not be available. In addition, home owners have to pay property rates that accrue annually. This is often expensive especially for high market areas where the government imposes higher rates. Lastly, ownership of homes comes with the additional costs of maintenance. As an owner, one has to consistently incur maintenance costs and see to it that the standards are maintained to the levels recommended and required by the regulators.
On the other hand, renting housing comes with its own unique advantages and disadvantages. The biggest advantage accruing from renting is the mobility of the person. As a tenant in a rental, one can exercise the option of movement from one house to another with ease. In addition, rental does not tie down one’s capital in housing to the exclusion of other investment. One can spend recurrent expenses in rental costs and invest the larger capital in more productive investment that earns regular income. In other words, renting a house frees a capital that would have otherwise been tied down in the home ownership project. Finally, renting as opposes to ownership reduces the confluence in ownership of property which has had the effect of affecting market stability by distortion and fluctuation of prices.
However, renting comes with its disadvantages. One needs to incur regular costs of rental costs which would have otherwise been channeled in other investment and costs. In addition, leaving on such regular costs means one has to continuously sit in a position of income so as to be able to offset the bills. This generally raises the illiquidity position of an individual which boils down to proximity to bankruptcy. Finally, renting limits one’s independence and degree of choice. One has to enjoy the property rented only to the extent permitted by his landlord.
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