Which is Best? Rent vs. Own?

Do you or someone you know live in an Apartment? A rental house? With the media touting routinely that demand and construction of rentals are up – and in many areas, rents are rising rapidly – why would someone want to buy a home instead of rent a place?

Graphic credit: House made Home

First, the National Association of Realtors (NAR) did a study that showed that overwhelmingly, some 80% of those renting would like to someday own a home. On the other side of the coin is the Wall Street Journal (WSJ), which claimed “the new math” of renting meant you weren’t as tied down when you rent in case you needed to move, and in some markets, rents are cheaper than a house payment.

Without disrespecting the WSJ, their thinking is flawed! Where ever you live – in a rental, or in a home you are buying through a monthly payment on a loan – a renter is paying someone else to own that unit.

Whether you buy or rent, you are paying for the housing. The big difference is, will you own it someday? In a rental, the answer is NO. When you are making monthly payments on the home, the answer is you own it now, and someday you may own it free and clear of monthly payments!

Here is an interesting infographic below by Mortgage Refinance that makes a number of points. We don’t agree with every thought, but this graphically depicts the thinking of people on both sides of the rent vs. own issue. For me, the bottom line is easy. Owning is better.

 

And since owning a manufactured home is the most quality affordable appealing home you can get in most markets, no wonder we’ve seen a 5 year growth in manufactured home sales in the U.S.. ##

By L. A. “Tony” Kovach