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Everyone wants to buy a house. They want to own a piece of property. There are several exceptional benefits of owning a house, but is buying or owning a house the right financial move? There are many things to consider when buying a house, and there are a variety of concerns of homeownership—affordability, property tax, utilities, and several other expenses. Some folks found out the hard way that homeownership was not right for them and would much prefer to rent than own. Millions of people make the mistake of buying a house for various reasons. Two thirds of millennials who purchased a house have regrets, because of the tremendous financial responsibility that comes with it. Now more than ever, U.S. households are increasingly renting than owning, that’s a fact. But why do so many find buying a house so appealing?

There are numerous reasons to desire to buy a house. Buying a home is the main attraction and pursuit of the American Dream. It is a cultural influence and one of the biggest aspirations in the US. It allows the individual the freedom and privilege of owning property. But buying a home is very expensive transaction. There are several variables why so many failed to be a successful homeowner. For most of us, buying a home is the largest expense we will incur in our lifetime. Among other expenses, such as education, retirement investments, career, and car, a home—whether renting or owning—plays a major role in personal and financial responsibility (at least it should). But, according to a recent study by Harvard University, an astounding 40 million Americans cannot afford their homes. Most likely, they have inattentively ignored saving opportunities when purchasing a home and prioritized their education, career, and other expenses over their mortgage or rent.

             Buying a house doesn’t necessarily mean it is the best financial option, for some people renting may be the preferred choice. Even a personal choice, owning a house is not for everyone. Nonetheless, millennials, Generation Z, and even older generations continue to make the mistake of buying a home, despite the fact that some can afford its cost. This is not solely for financial reasons, but for other variables as well, including location, career, the size of the property, constantly moving, not hiring a home inspector, property taxes, unaffordable mortgage rate, and so many other negative variables that may result in buying a house that becomes an unpleasant (and overly expensive) experience.

             Don’t let any of these facts intimidate you from buying a home. You should take pride in the home you want to live in and strive for a better home. It is the American Dream! Buying a house can be an investment, and it can be very rewarding; an asset from which to prosper, because a house is an appreciating asset. Appreciating asset are any asset you own that increases value over time. Whereas a car is a depreciating asset. Over time, cars can lose value up to over 50% after 5 years of ownership. A house, however, can increase in value up to 20% and more throughout the years. It is very important that you go over everything when buying a house, and when I say everything, I literally mean EVERYTHING! Not just financially, but all these considerations as well. When buying a house, there’s a lot you need to know. Purchasing a house can be a financial disaster, or it can be very profitable, depending on how you make it. It is essential you take your time on this decision; it may be the biggest mistake or the biggest success in your life. One thing is for sure, with the knowledge, you will know what is best for you. Without the knowledge, you may not get so lucky, it may be a costly mistake. It may be an invaluable lesson, but it is much better to do it right the first time. Take everything into consideration, so you can be propitious in your investment and secure your home.

But Is Renting Better?

Not everyone can own, so is renting a better choice? It depends. While majority prefers to own, owning may cost people more than to rent. Owning may not always be the best solution for many people. There are pros and cons for both renting and owning. Owning may be the best long-term financial choice, but only if you can afford it. Renting may work for you if you don’t bring in large income(s) or have a considerable amount of debt. Everyone is renting these days because it is cheaper than owning. But no matter how long you stay in your residence, you will never own it. Even if you lived in an apartment for 10 years, you would have no equity. If you want to own a house, you must make a down payment toward your mortgage and pay property taxes. You also have additional expenses to pay, such as utilities, HOA fees, homeowner’s insurance, and maintenance repairs, because maintaining the house is your responsibility. Unlike renting, the landlord takes care of maintenance and other expenses; that is one advantage if you are renting.

For most of us, rent is the better option because we cannot afford to pay the monthly mortgage payments along with all the other expenses that comes with owning a home. People simply don’t make enough income to support a 15 or 30-year mortgage. Although you may deduct your property taxes and mortgage interest, property taxes may take a huge chunk out of your wallet. Renters wouldn’t have to pay property taxes because the landlord would be paying their tenant; however, the landlord can raise your rent every year. Keeping up with property taxes, HOA fees, utilities, mortgage payments including interests, other loans, and expenses could be debt-exhausting and financially overwhelming to own a home. Also, buying a house and even maintaining it comes with a lot of work. It may hurt your finances a lot more than renting. When you sell your house, you don’t always come out on top. In other words, you don’t always make a profit. You may come out losing more than what you bought in for. There are some people who weren’t as fortunate as others—some who weren’t able to sell their homes. They are constantly putting up with the housing market and dropping the price until it sells. But if you can afford buying a house and supporting your mortgage plan, then buying is usually the best financial choice. The bottom line is that buying a house is the better investment because of equity, but most of us can’t afford it, so we must settle with rent.