Question

The big advantage to owning a home is that eventually (hopefully around retirement), you will no longer have a monthly payment for housing (although you will always have taxes and upkeep.) That said, home ownership is not always the good move.

Do you own, or hope to own in the near future? If not, what are your reasons for preferring to rent/lease?

Answer 1

I am not hoping to own a house in the near future. The main reason I am not thinking to buy a home in recent future because I am young and currently don't have any responsibility. Thus currently it does make sense to buy a house because of some of the reasons listed bellow:

1. If I buy a house today then I would be using the house and would require to pay EMI for the loan taken for the house. The only saving I would make is in the rent I would have paid if I had not taken the loan. Considering my example I am single thus the rent would be lower thus the savings would not be too much. Instead If I buy a real eastate or investment that can pay me rent or dividend then it would generate cash for me. If I buy real estate on loan and that real estate pays me rent and that asset will pay for itself. And If I need to buy a house in near future I can sell off the real estate and pay for the new home.

2. When we buy a home, there are additional costs such as maintenance, appliances, furniture etc. which add to the cost. While renting everything is shared thus overall cost of those items will be lower.

3. With time real estate ages thus renovation is to be done and thus more cost is incurred to keep the real estate as it is. While renting the owner has to pay for the renovations and other expenses.

4. When you are living in a house it becomes more of liability than asset as you cannot sell it if you need money. It would be last option to sell a house in which you live. Thus even if the house increases in value it will be of less use.