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Renting vs Owning - The Big Debate

Renting vs Owning - The Big Debate

There comes a time in everyone’s life where they have to make the ultimate decision and decide whether to buy and own their own home or continue to rent. It’s a huge decision as both have notable benefits and disadvantages and it is not one to be taken lightly. So lets have a look at these advantages and disadvantages to see which option is really the best option for you.

Owning your own home is the traditional dream that practically everyone has, especially when it comes to starting a family. It gives you a feeling that you have accomplished one of your goals and that you are both financially and emotionally secure as well as giving you a great sense of community. But is it the right decision for you? Lets have a quick look at the advantages and disadvantages of buying and owning your own home.


  • Set your own rules
  • Sense of security
  • A home is a great investment (long term, not for a quick turnaround, especially in todays market)
  • Get various sort of tax rebates and deductions
  • Repayment is usually the same or even lower than it would cost to rent - see example of my rent vs own comparison
  • You build equiry over time
  • Improve your credit score if you need a loan in the future


  • You are liable for any accidents and injuries on your property
  • You are liable for any damage to your neighbors house if stemmed from your property - for example a tree branch falling over the fence and damaging something in your neighbors yard.
  • Responsible for any maintenance in, on, or around your home
  • No longer can you just pack up your things and leave when you want. You'll need to list and sell your home
  • Large loan responsibility even if you are having financial hardship
  • Required to have homeowners insurance to cover damages to the property
  • Responsible for property taxes
  • Requires an upfront down payment (VA and USDA are 100% financing products, if you qualify)

Renting is something most of us start out doing and many people are comfortable doing it all their lives. There are many advantages to renting a home but there are also a few disadvantages. Let’s have a look at them.


  • You can up and leave as soon as your lease it up
  • If you run into a financial hardship, you can move again
  • Little or no responsibility for maintenance
  • Sometimes utilities are included in the rent cost
  • Sometimes you have free use of amenities such as laundry, pool, and other sorts of actualities


  • Limited or no freedom to what you can do with the place (paint, design, build, etc)
  • Rent MAY increase
  • No tax deductions
  • At risk of being evicted
  • The house could be sold and you can be asked to leave
  • Could have restrictions on certain things like noise and pets
  • Could have restrictions on the number of members living in the house/apartment
  • Rent is not going into a productive investment for you

As you can see clearly there are many advantages and disadvantages to owning your own home and renting. Some have advantages and disadvantages the other doesn’t have, but both can be a comfortable way to live. When it really comes down to it you have to choose the one that suits you’re financial, emotional and lifestyle needs at this time. You have to take your future into account as well, will you want to be tied down and take responsibility for a huge investment or will you prefer the freeness of being able to move whenever you please?  It can be quite a hard decision to make and it is one that needs a lot of time and thought before you proceed to take any further steps.

When you call me, I take the time to evaluate your current financial status and together we can compare the pros and cons to owning a home. In addition, I take the time to complete a Total Cost Analysis. Together, we will find the program that works best for you and your family.



Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage



The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 32 commentsJohn Cannata • October 28 2011 11:42AM


Well-presented, John, thanks for sharing with me.

Posted by Teral McDowell (Referral Patners LLC) over 8 years ago

Great post John. I love how you end the post. Helping one discern the pros and the cons is a great value add to your potential client.

Posted by Mike Yeo (3:16 team REALTY) over 8 years ago

Thank you Teral and Mike. Many first time home buyers are not positive if its right for them. Figured this was a pretty decent list for them to consider.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

Very Suggested, John!  Well done!  And provides exactly the info those weighing the benefits of renting and buying need to possess and chew on.


Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) over 8 years ago

Thanks Gene! I appreciate it.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

John, I like that you did the pros and cons of both. Often many REALTORS only say the advantages of owning.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 8 years ago

John  That is an extremely complete list - I agree with Gene.  I am suggesting also

Posted by Karen Kruschka, - "My Experience Isn't Expensive - It's PRICELESS" (RE/MAX Executives) over 8 years ago

I think the information is well presented, John. Renting versus buying is a great debate for short-term goals but on a long-term basis, everyone shoudl strive to own, rather than rent.

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co.) over 8 years ago

Thank you Gary. I try to cover the pros and cons with buyers, and also cover them when someone is considering a refinance. It does not always make sense, so you need to show the homeowner why a slight adjustment in the rate does not always equal a savings.

I appreciate you suggesting the post Karen.

Agreed Loreena. Ultimately a home is a wonderful investment and what comes with it is a great sense of security and pride.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

John - There are so many pro's and con's when it comes to renting vs. buying, I personally couldn't imagine  becoming a renter   again.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) over 8 years ago

This tells it the way it is. Great post- Maybe my "Suggest" will do the trick!

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) over 8 years ago

Michelle - I agree, but for some people it seems to work out better for them. Not everyone needs or wants to be a homeowner.

Ellie - I appreciate the suggestion. I dont think it will happen, but I still appreciate you suggesting it. :-)

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

John, well-thought out post! There are advantages to both, and I agree, it depends on the needs of the individual or family. Suggested!

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) over 8 years ago

Thanks Pamela. I appreciate the suggestion, but mostly I appreciate the comment.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

There certainly is not "right" answer. Everyone must look at the pros and cons and determine what is the best for their situation. 

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 8 years ago

Great blog John! Very informative!

Posted by Maggie McFarland, Pearland Realtor, Homes for Sale in Pearland Texas (RE/MAX Pearland - Maggie McFarland) over 8 years ago

Great is always advisable to weigh your options! In the Phoenix AZ market it is making more sense to buy right now.  Low prices and low interest rates are making mortgage payments less than rent! I have 1st time home buyers are getting into homes for $500, $600, $700 dollar monthly mortgage payments! It's crazy!

Posted by Neil & Carol Veneroso (West USA Realty, Surprise & Sun City AZ) over 8 years ago

Buy nothing, control everything and job done, with the exception of making sure you get the contract price on it cheaper in the end then it is now.


Control is the only keys you need to the home

Posted by Lady Elaine Elizabeth Boden (eboden) over 8 years ago

Great Blog!!!

Posted by Matthew Francis (The Francis Team) over 8 years ago

John, very well written. You explained the Pro's and Con's extremely well. Hope you don't mind me re-blogging this one!

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 8 years ago

I think you wrote a very balanced blog post.  Asking real estate agents if home ownership is better than renting is really akin to asking a car sales man if owning a car is better than public transit.  There are pros and cons to each and the end answer will be different for different people.

Posted by Mark Delgado, Benicia and Vallejo, Property Management, rental h (houses for rent, Solano County & Glen Cove) over 8 years ago
John, you have covered this topic very well. This is good information to share with buyers, especially those who have never owned before.
Posted by Karen Crowson, Your Agent for Change (Coldwell Banker Residential Brokerage) over 8 years ago

Let's hope the advantage of tax deduction continues for home ownership. This along with many other "tax breaks" seem to be on the chopping block.

Posted by Scott Petersen (Client First, Realtors - Canton, MI) over 8 years ago

I know there are some benefits to renting especially if you move around a bit but at this point in my life I can't imagine doing it! 

Posted by Rosalie Evans, The Evans Group, Sioux Falls, SD Homes For Sale (Meritus Group Real Estate) over 8 years ago

Very nicely done John, a good overall comparison of the differences between renting and owning.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 8 years ago

John, your Total Cost Analysis says it all. Education is key when discussing this with potential buyers.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 8 years ago

Good morning Activerainers. Thank you for suggesting this post for a feature. I appreciate it. I also am really thankful that some of you reblogged the post. When dealing with buyers, you want to help them make the best decision for them and their families. Have a great day!

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago

Sherwood Baskerville

Great post John. The easy answer is always to buy vs. rent, but I agree, that is not always the best solution. Good job.

Posted by Sherwood Baskerville, ABR (Sherwood Baskerville Real Estate) over 8 years ago

Excellant breakdown here.  Its about being able to do it (buy) because of credit for some. I think most want to own. The few that dont just dont know where they will be in the future or have other fears.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) over 8 years ago

Great post. I recently ran into someone who asked me why they should continue "throwing money away" on rent. Obviously, I disagree in general to that comment as renting can be especially advantageous in a variety of circumstances.

The big takeaway here is that purchasing a home and/or leasing a home should be taken as a serious business decision. It should be done strategically to position yourself and your family in the best possible scenario financailly and socially. 

Greg, Fischer Real Estate Services - Fort Worth, TX

Posted by Greg Fischer (Fischer Real Estate Services) over 8 years ago

I'm a little late to this show but have to say it's a great article really showing a non-biased Pro's & Con's view of both Renting & Owning! Thanks for sharing ... I'm going to SHARE this w my clients and prospects.

Posted by Samantha Smith, Sam I Am Houses, Simply Texas Real Estate (214.422.0729 over 8 years ago

Thank you for all of the comments and reblogs. I appreciate it. There are certainly many things for a young family to consider when purchasing a home or continuing to rent.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 8 years ago