Advantages and Disadvantages of Buying and Owning A Home Versus Renting

Picture yourself driving your car into your garage of your home where you find your family, your dog, and a nice hot dinner awaiting you. Ah the American Dream – at least one version of it anyway.
While your dream of owning a home is your version of the American dream you may want to look at the advantages and disadvantages of buying and owning a home to help you decide whether you should become a home owner or not.
Family size, job stability, location, income and lifestyle are only the icing on the cake in considering homeownership. However, there are homeownership concerns in addition to these that often get overlooked.

Comparing Home Buying versus Renting – Various Considerations


Over time as a home owner, your monthly mortgage payments will add up in paying down your mortgage to give you a solid cash return when you decide in the future to sell your home.

Monthly rent certainly keeps a roof over your head but returns nothing to you in the long run.

In most cases, as a homeowner you can deduct part of the mortgage interest and real estate taxes you pay each year that you own your home. 

As a homeowner, you can expect equity to build over time as home values rise in the area and you pay off your mortgage.

Buying your own house frees you from landlords, policies, and rental agreements.

With a fixed mortgage payment you can always budget your housing expense, but with renting your landlord has the right/ability to increase your monthly rent payment at the time that your lease ends.


You may be relocated with your job and have to sell your home – but not be able to in the case that your local real estate market values have decreased. Your mortgage and home are not portable like you and a rental situation.

You take care of leaks, broken appliances, utilities, upkeep, renovations, HOA and other home-related costs. There is no landlord to come to the rescue. The only person to blame for poor home upkeep and maintenance is yourself as the homeowner.

Financial and credit ramifications are must steeper if you have to walk away from your mortgage contract versus walking away from a rental contract.

Homeownership can be more expensive in the case that you need roof repairs or new appliances for example. Whereas, as a renter you can call the landlord when your AC unit conks out on you.

Our list of advantages and disadavantages are not designed to scare or discourage you. Rather we hope that in reading our information you really do some critical thinking to make sure that homeownership is really right for you.