If Owning Is Better, Why Rent?

Rent Versus Buying

The Rent Vs. Purchase debate has gone on for years. In many cases, purchasing a home can make more sense financially than renting. Even when there is market trouble or a financial recession hits, homeowners can still end up on top. So, why is it that some people prefer to rent?

We sometimes fail to take into account the true cost of homeownership and the overhead that is associated with being a homeowner. Let’s cover a few!

Purchasing A Home Is A Lot Like Going To The Car Dealership

Yeah, you may have your sticker price, but in the back of your mind you’re thinking about taxes, title, and registration. In a lot of ways, the same concept applies to purchasing a home. Not only do you have to budget for the cost of the home, but you have to remember property taxes, homeowners insurance, closing costs, commissions for your realtor, etc. And that doesn’t even cover the cost to move! Folks that choose to rent do so not only because of these costs, but the thought of having to pay an HOA.

Homeowner’s Associations (HOA)

HOA’s were created to bring order and guidelines to neighborhoods in order to maintain a safe and well kept environment. HOA’s watch over everything from maintaining neighborhood clubhouses and pools to covering the groundskeeping and re-paving roads. Every HOA has their own set of rules. Typically, an HOA Board holds regular meetings to discuss individuals and situations that do not align with the rules. Members of the Board will enforce the rules to ensure that all homes within the community are kept neat and that homeowner’s are peaceful with all neighbors.

In order to have a well functioning HOA you must have money, and that money comes from none other than the homeowners. If you choose to move into a neighborhood that has an HOA, it isn’t an option to choose if you want to participate. It is required that you pay the regular fee when it’s due. Depending on the neighborhood, location and exclusivity, fees can get pretty pricey.


When you sit down to budget the expenses of owning a home, it can all of a sudden feel very overwhelming. Where you might have just expected your mortgage and perhaps yearly property taxes, you now have another expense to think about. For most people, it means cutting other things out of their budget. Many may opt to rent a home or apartment to avoid having to make these financial sacrifices or decisions. 

There are many reasons that some will rethink purchasing a home with an HOA. Some homebuyers hate the thought of having to “live by the rules” and having restrictions. For people that want more freedom, deciding to rent makes more sense. They ultimately aren’t responsible because they don’t own the home and don’t have to pay the fees.

For people that only plan on staying in a newly purchased home for a few years, they end up only paying interest on the mortgage and don’t even break even. For renters that move a lot or don’t want to be in one place too long, financially it may make more sense to rent.

If you happen to be a homeowner with a high HOA, don’t get discouraged. It can actually work to your advantage. Renters will love the perks of living in a neighborhood with an HOA and will most likely stay longer, and pay higher rent due to the exclusivity. 

Do you have questions about whether or not owning a home is best for you? Give us a call!