WHAT IS BETTER: MORTGAGE OR RENT? 2
What is better: Mortgage or Rent?
Many individuals who do not own homes continuously face the dilemma of deciding
whether to rent houses or take out mortgages to purchase residential properties. Each of these
options has numerous benefits and drawbacks. Renting a house leaves one with the freedom to
move out whenever they like. Because rentals may be cheap, tenants incur less short-term
expenditure. However, it subjects the tenant to the mercy of their landlords and landladies who
may change the terms of engagement at any point. Conversely, the capital of a mortgage may be
expensive, but gives the comfort of security and ultimate property ownership. Despite being
considered expensive, mortgages provide better options compared to rent because they offer
affordable ways of owning homes and cost effective ways borrowing.
The most common reason people choose rent over mortgage is financial. Many who
cannot afford down payments for homes consider renting a better option. The inability to raise
such capital may be caused by poor credit rating or excessive debts. Hence, individuals may stay
in rentals as they continue building their credit. According to Manturuk, Lindblad, and Quercia
(2017), the extra expenses required for maintenance and renovation of homes may be another
reason to rent. Additionally, those who rent have no binding attachment and can move out to
cheaper or preferred locations at will. Notwithstanding, an analysis by Buzi (2017) indicated that
various disadvantages still make this option undesirable. If the home owner decides to sell the
house, one is subjected to a new lord who may even issue an inconveniencing eviction notice.
While the privacy of tenants may always be compromised by neighbors or owners, their rules of
engagement can be changed at any time. A typical example is the sudden increment of rent.
On the other hand, mortgages may appear expensive but still offer a better and more
comfortable option. When processing a mortgage, one requires a large sum of money or
