Mortgage or Rent: Financial Tips for Making the Homeowner or Tenant Decision

picket-fences-349713_1920It is an aspiration for many people when they start out in adult life, to own their own place that they can truly call home, but is it a realistic ambition in the current financial climate or even a wise move?

When you are posing the rent or buy question there are number of factors to consider, such as affordability and eligibility, and California Mortgage Advisors has the info on some of the those key questions.

Pros and cons on both sides

There is probably no definitive answer as to whether it is better to buy your own home or rent, as there are pros and cons attached to both options and it also depends on your own personal financial circumstances to a certain degree.

Take a good look at both sides of the argument and see which one is more persuasive to you and realistic, based on your answers.

Money matters

There is no question that money is at the heart of most decisions and that is particularly true when it comes to considering whether you are in a position to buy your own home or whether your finances are up to the task.

Think about what your life and financial plans and aspirations are and see where homeownership fits into your own unique blueprint.

Consider how flexible your finances are in terms of fluctuating costs, which can be the case as a homeowner when things happen like mortgage rates rise and the heating system breaks down.

More cash left over

Although it is not always the case, it is possible that the renting option will mean that you have a greater chance of having some spare cash left over each month, after you paid the rent and other fixed bills.

One of the reasons why this is more likely to be the case with renting rather than buying your own home, is the fact that common problems like a leaky faucet involve a phone call to your landlord who then has to pay to get it fixed.

If you are the property owner, it will be down to you to find the cash to get the repair done. This is one of the fundamental reasons why renting can often be the cheaper option.

Greater control

If you own your own home, you will have a greater level of control than you enjoy as a tenant.

If you keep making the mortgage payments you can stay in your home for as long as you want, so there are no worries about a landlord giving your notice to quit. It can also be frustrating to have to request permission from the landlord to make any changes to the property, which includes doing any decorating or even sometimes putting something up on the wall.

Owning your own home does potentially give you a greater level of control over your financial destiny, as you will benefit from any growth in the value of the property over time, allowing you to build up equity and increasing your wealth, which is not an option from a property that you are renting.


If you are trying to build a career or have work that can take you to many different areas, it can sometimes make things very difficult if you own a house in an area that you no longer wish to stay in for whatever reason.

If you are renting, this is not such a problem and you have greater flexibility to be able to give notice to quit and then move on to a different area with relative ease.

If you own a property and most of your money is tied up in your home, you may have to wait months to sell it before you can carry on with your plans to relocate.

If you need flexibility with your living arrangements, it may well be better to rent, unless you want to rent your home out to pay the mortgage while you are away.

Down to you

You cannot put a price on peace of mind and a feeling of security, which is something you get when you own your own home.

Only you can truly decide what you really want to do with your living arrangements and financial future. If that involves owning your home and starting a family, then you can plan for that eventuality.

As long you have enough money to put down on a property, you have options, so it is down to you.

Paige Little works as a personal finance consultant and deals mostly with those seeking advice on mortgages, particularly with first time buyers. She shares her insights on personal finance blogs and property websites.


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