I have recently read a number of articles that advocate renting a home, rather than buying. What bothers me most about these articles is that they are written by people whose advice I normally respect but, in this case, I feel compelled to disagree.

   I do agree that buying a home early in life may not make sense.  You may be working at a job you tolerate, rather than enjoy and are waiting to move into that great career opportunity. Your income and savings may not be sufficient to cover the expense of buying a home and paying a mortgage.  Your current job may make it necessary to move often.

  But, let’s not just look at the next few years, rather let’s look beyond retirement, as far as fifty years from now.  If you are in your 20’s or 30’s and think fifty years from now is a long time, ask your parents or grandparents how fast time passes.  

   Back to the articles. I’ll list the “advantages” given for renting over buying and then give my response.

   “Advantage” number one – Flexibility. Renting gives you more freedom to relocate which is explained as the ability to move, either to another place nearby or across the country, if your job makes it necessary, or if a new job opportunity should open up.

   Disadvantage number one – If you are renting you have a legal contract, a lease.  You are bound to pay until that contract expires unless you can work out something with your landlord. If you own your own home, you have the option of selling, or becoming a landlord yourself while you settle into your new home, which you may have to rent until you get settled.

   “Advantage” number two –  no maintenance.  If you are renting you do not have to maintain your home – your landlord will see to the repairs, updates, and maybe the yard work.

   Disadvantage number two – I can’t really argue with that one.  Home ownership does come with additional costs which should be factored in when looking to buy.  So, when considering a particular house, be conscious of the condition. Do get a complete inspection by someone you trust.  How old is the house? What is the condition of the heating and air conditioning?  How old is the roof?  Will you be happy with the yard?  Even if all these answers are positive, budget at least 10% of the cost of the mortgage for monthly maintenance.

   “Advantage” number three – amenities.  Renting, if you can afford it, can provide amenities you may not find if you own a home.  For instance, a rental may have a pool, gym, and other luxuries from saunas to theaters.

   Disadvantage number three – I personally consider the amenities advantage weak.  Many housing developments have community centers with similar amenities. In both cases there are probably additional costs that may be extra, as in the case of a homeowner’s association , or built into the rental lease.

   “Advantage” number four – financial predictability. If you sign a lease, your cost for rental is predictable for the length of the lease, usually for the year.  If you own a home your property taxes and cost of homeowner’s insurance may increase.

   Disadvantage number four – If you are renting, your rent will eventually increase because your landlord’s property taxes and cost of insurance will increase and that increase will be passed on to you.  Also, property taxes increase as the value of your home increases, meaning that your home is more valuable than when you bought it. That is an advantage.

   The articles I have referred to do make a point that renting is not throwing your money away. I agree. You are paying for a place to live.  I do not disagree with renting when it is advantageous to do so.  But, eventual home ownership comes with some great advantages.

   Your mortgage is locked in – it will not change, unless you cause the change.  It is predictable.

   At some point your home will be paid for. This is a great advantage when you get old.  Let’s go forward that fifty years I mentioned earlier. Both your body and maybe your mind, may become frail.  If you want to move into a retirement home where you will be cared for if it becomes necessary, selling your paid-for home can cover the expense of the retirement home. 

   If you prefer to remain in your home, you can modify it to accommodate you if you do become disabled, by making it wheel chair accessible, installing a chair lift or adding an extension. You can’t do these things in a rental.

And, when the very end comes, if you own your home, you can leave a paid-for home to your spouse, if you are married and he or she is still living, or you can leave it to your children or anyone you wish.  You can’t bequeath a rental.