Difference Between Owning Home And Renting

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Recommended: Comparison and contrast of renting a home versus buying a home

Most people around the world want to live the “American Dream” by owning a home, however; renting may be an alternative option. Homeownership may not be for everyone, but is renting really the answer? Does it mean that if someone does not own a home, they are not living the dream? Perhaps the answers come after laying all the cards out on the table. Owning a home and renting both offer people a sense of accomplishment, but things such as financial costs, long-term investments, and freedom play a major role in the decision to rent or buy.
Owning a home can sometimes be extremely costly to the homeowner in the beginning. For example, a person would have to come up with a down payment before ever getting into the house. Often times the down payment is around twenty percent of what the home may cost. Furthermore, a person would have to come up with the closing
Individuals renting a home do not have the worry about a twenty percent down payment but, they do have to come up with a security deposit and first month’s rent. A security deposit is usually a whole month’s rent to pay for any damage incurred while renting the place. Renters have the opportunity to get some of the security deposit back at the end of the lease as long as the home is in good condition. Additionally, renters do not have the worry about personal property taxes, homeowners insurance, or closing cost fees to rent a dwelling. Really, some properties give renters the option of getting renter’s insurance to cover any damage to their personal belongings while others require a renter to have it. Furthermore, maintenance expenses would not be the responsibility of the renter; so, if something was to break all the renter would have to do is call the landlord and he or she would have to take care of the problem. Financially speaking, renting a home would be a great alternative to owning where money is

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