Buying v. Renting: Advantages and Disadvantages

Buying a House:

• Owning a home is a solid investment. Provided you pay off your mortgage, your home can become your most valuable asset.
• Upgrades and improvements to the property are up to you -- make it your dream home.
• Don't have to rely on the Landlord to maintain the day-to-day upkeep of the property

Disadvantages

• The financial load can be disheartening -- both in the amounts and the complexity. Besides the mortgage payments, there are other costs to consider as well like legal fees, estage agent fees and stamp duty.
• Any major repairs will have to be financed by you
• Renting property doesn't tie you down to a location like a home does.
• If the value of your house falls below what you paid for it, you'll be left with negative equity.

Renting a House:

Advantages

• Less money required up front. While there is still usually a bond required, the amount of money required up front to rent is significantly less than the funds required to purchase a house initially. If your rental flat comes furnished, that's even less money out of pocket.
• Flexibility of location. If you move frequently for new jobs or family, a rental offers relocation with relative ease.
• The Landlord is responsible for maintaining the property

Disadvantages

• With eviction and non-renewal always possible, there is less sense of security in a rental
• All rent money paid goes into the Landlord's coffers. When you own a home, your mortgage payment comes back to you as an asset.
• Fellow tenants can be troublesome.
• A shady Landlord may try to cut corners in the maintainence -- leaving you with a lower quality accomodation