Home Ownership Is Better Than Renting, But It’s Still Risky

Most experts agree that home ownership is better than renting. Even so, it is still risky. If things go wrong, it’s your responsibility (and yours alone). No landlord is going to come and rescue you. 

The following article explains some of the advantages and disadvantages of home ownership. At the end, we leave it up to you to decide whether it is a responsibility you want to take on. 

Advantages Of Home Ownership

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The main advantages of home ownership are as follows: 

The Opportunity To Build Equity

The main advantage of home ownership is the opportunity to build equity. Home values tend to rise over time, meaning those with properties often see their wealth rise compared to those renting. 

What’s more, you don’t have to wait until you sell to access this cash. You can also get it by remortgaging at a higher value and releasing additional equity (essentially giving you your money back). 

The Potential For Appreciation

Related to this is the potential for appreciation. Not only will your equity in the home increase, but so too will its market value. Even if you take out an interest-only mortgage, you could still build wealth using a home. 

How much home prices rise will depend on your area. But the trajectory is almost always upwards over time. 


Finally, owning a home gives you stability and control. You have a valuable asset behind you and can manage your living situation how you want, either painting the interior, changing the carpets or hanging artwork on the walls. You don’t have to wait for permission from a landlord. 

Disadvantages Of Home Ownership

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Of course, the picture isn’t entirely rosy. Here are some disadvantages of home ownership. 

The Upfront Costs

Homeownership is expensive (which is why a significant portion of the population never achieves it). You have to find money from somewhere to purchase a property and get on the housing ladder. 

This barrier can be significant, particularly in high-value areas. And it can raise mortgage costs, too. 

The Maintenance Responsibility

Added to this is the maintenance responsibility. The average homeowner spends around 1 to 2% of the price of their property on upkeep every year, eating into their returns. 

Things like flood damage repair and roof repointing are essential but require expense. 

Less Flexibility

Finally, people who own homes have less flexibility than renters. Selling a house is a long and challenging process that often takes months. It is almost impossible to time the market, and often you have to take part in long chains of buyers and sellers that can take months to complete. 

Lower flexibility is okay if you like stability or want to remain in the property long-term. However, it can make life tricky if you need to move regularly for work. Constantly incurring transaction costs on property moves is expensive and can leave you feeling out of pocket. 

So, there you have it: homeownership is a double-edged sword. On the upside, you own your own place, but on the downside, you have to manage it yourself. 

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