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Owning vs. Renting The House: What Is Still More Profitable?

By Jamie Richardson | January 30, 2020

What can be better than having your own, private, and cozy space, a place that you can call your home? 

Without any doubt, having a bit of personal space is something each of us strives for. However, to have one, it is not necessary to buy it.

Rental is probably one of the best things we have in the modern world of the rising sharing economy. It gives anyone a chance to live anywhere, without having to make a large investment in the property. 

However, is renting better than owning? This is an age-old question that has caused numerous debates among people of all ages and from all parts of the globe. 

In this article, we are going to look at the core pros and cons of each and try to finally find the answer to this question.

Pros and Cons of Renting a House

Let’s start with the key pros:


What happens when you buy a house? It takes one to a whole new level of responsibility. After all, from the moment when you receive the keys to your newly purchased property, you are the one in charge of everything, including repairs and maintenance. 

Needless to say that maintaining a house (or even an apartment) can cost a lot of money. However, that’s not the case with rented property.

The first benefit of renting is that you usually won’t have to worry about maintenance-related issues such as leaks, breakages, and so on. Without a doubt, this fact can significantly reduce your expenses, which is great!


This benefit is especially important to groups of people who are forced to move a lot, haven’t yet settled in a specific place, or are just enjoying being something like a “rolling stone.” 

Indeed, signing a lease, you get certain freedom – whenever you need or want, you can end the contract and move to some other place. As a rule, you don’t get the same level of mobility when you own a house.

No Mortgage

People who have ever dealt with debts before should know how stressful it can be to make those monthly payments. 

When you purchase a property, it brings along lots of out-of-pocket expenses such as monthly payments and high interests. And if you fail to pay it off, you may get kicked out.

There are no such issues if you are not an owner, and, as a rule, it costs less than mortgage payments. This is especially good for college students who don’t yet have financial stability and have plenty of other expenses, including tutors, getting urgent academic help from, books, loans, etc. 

Also, many students can’t afford to make large mortgage payments each month, which makes rental a perfect option for them.

Now, what are the main downsides? Let’s look at the most significant cons:

Tricky Leases

It has already been mentioned that it generally doesn’t require you to pay for maintenance when it comes to renting. Mostly, that’s true. 

However, there is another side of the coin – some leases are very specific in defining what your responsibility is and what isn’t. 

Therefore, if you don’t read everything carefully, you may face some unexpected fees for breaking something or may be required to share expenses for repairs. 

Lack of Personalization

One of the best things about having your own house is that you can decorate and remodel it however and whenever you want! 

Being an owner gives you plenty of space for personalization and creativity, which helps to make space more to your liking and much cozier.

Unfortunately, that’s usually not allowed if you are renting. As a rule, you will not be able to make extensive changes in the interior of the house.

Or, even if you got permission to do some remodeling, just accept the fact that you will probably not get paid back for it. Thus, by doing so, you are making an investment in someone else’s business, allowing a landlord to raise the rent afterward.

Investment in Someone Else’s Asset

Probably the biggest downside is the feeling that you are paying for someone else’s asset rather than investing in your own.

Pros and Cons of Owning a House

Now, what are the benefits of being an owner? Here are a few points to consider:

Space for Creativity

Once you are an owner of the property, you can do whatever you want with it. And this can be pretty fun and exciting. 

You can paint the walls in whatever colors you like. Feel free to change the furniture, remodel each and every room, or do whatever else you feel like doing, and no one can tell you can’t do this!

Wise Investment

Buying a house or apartment, you make an investment in your future. Although now it may take time and lots of money to pay it off, it will turn into your own asset that can return on the investment. 

For example, you can rent it or sell it with your interest to make it work for your benefit.

Tax Deduction

Another significant benefit is the so-called Mortgage Interest Deduction, which deducts the whole sum of the mortgage interest that you paid in that year.

And here are a few cons:


Unfortunately, owning a property means taking full financial responsibility for its maintenance. And this can appear to be pretty expensive.

Lack of Freedom

We’ve already mentioned how much freedom you can get while renting a house. That’s not the case with owning one. 

For example, if you decide to move to another country, you will probably have to sell your property first, which can take lots of time and take a toll on your nerves.

Instability of the Housing Market

The last huge con is the fact that the housing market is constantly changing. This means that the asset you create can lose a lot in price by the time you pay off the mortgage or decide to sell it.

Owning vs. Renting: Which Is Better?

Many people strive to purchase a house. This is pretty natural. They believe that this way, they create a good investment in their future, which can serve as a great personal asset. 

However, keeping in mind the unstable situation in the housing market, this investment can turn out to be not the wisest one.

If you are renting a house, you are investing in paying for someone else’s mortgage, taxes, and provide a landlord with money for living. Also, you may lack freedom in terms of how you use and style the space. 

So, what is more profitable? With all the pros and cons of each option, it is impossible to say for sure if it is more profitable to own or to rent a house. 

There are both positive and negative aspects to both variants, which is why the answer to this question eventually gets down to your personal preferences.

Jamie is a 5-year freelance writer who enjoys real estate. He is currently a Realty Biz News Contributor.
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