Home Owners vs Renters - Belouis Investment Group
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Home Owners vs Renters

Home Owners vs Renters

There are plenty of arguments either way – on one side are the renters, keen to avoiding mortgages and debt. On the other, are the homeownership advocates who will tell you the downsides of paying off someone else’s mortgage.

In the end, there is only one question – is owning my own property really worth it?

The answer is maybe.

Here’s the thing, home ownership is a brilliant financial and personal decision if you are the type of person who loves being able to shape their own lifestyle, and seeks to grow long-term wealth. If this is you, then home ownership is a no-brainer.

Home ownership lets you build equity

If you’re the type of person who likes improving their home, or taking care of their property then owning your own house is not only a good lifestyle choice but also a good financial move. Statistically, real estate is one of the best investments you can make (when compared with variable investments such as the stock market etc, obviously there are exceptions) and so if you aim to improve your property, you can directly benefit financially from those improvements. As your property increases in value, the equity (the amount of money the property is worth as compared to what you owe) of that property increases also. You can potentially use this to borrow against or realise it as profit when you sell the home. Obviously if you are renting, then the money you are spending is, “dead money,” in that you have no way to get any of it back.

Home ownership isn’t as financially intimidating as it may appear

Of course, taking a loan out for hundreds of thousands of dollars is an intimidating prospect, and rightly so. But when you break it down, it may not be as big a deal as it looks. You see, on a weekly basis you pay rent. If you stop paying, then you have to move out of the property. The same is true of a mortgage – in fact, there is no significant difference other than any disparity between the rent and mortgage rate. Of course, you have to pay for the upkeep of your own property and other expenses when you own, but when you look at it on a monthly basis it may not be quite so different, especially in terms of lifestyle.

Renting is dead money.

From a purely financial point of view, any money spent on rent is money lost. As alluded to earlier in this article, if you are renting then you are spending your money on paying off someone else’s mortgage. Of course, if renting fits your lifestyle that is absolutely fine, but if investing and growing wealth is one of your primary goals then home ownership is by far the best investment.

Again, there is no right or wrong, but financially, home ownership presents more opportunities than renting. Consider the pros and cons and make the right decision for you, but just make sure that where you choose to live will match your lifestyle choices in years to come.


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