When deciding whether to buy or rent a home, there are a multitude of factors that should be weighed before the actual real estate conversation is started.  Family, job security, type of career, schools, commute, health and other aspects of life all matter when making a real estate decision.

Then, even after weighing the importance and influence of everything mentioned above, there’s still more to consider when it comes to the actual real estate itself.  Below is a list of some of the most important topics that will help decide between owning and renting.

Current & Future Wealth

Nothing in the remainder of this article matters if the money required to buy a house isn’t available.  The down payment is what prevents most renters from becoming buyers.  Saving a nest egg large enough to create a manageable monthly mortgage payment is hard to do these days.  Education and living expenses are higher than they’ve ever been.  Combine that with a lack of proportionate increase in incomes and a lot of people are eliminated from the home-buying equation.

For those lucky enough to have saved enough, with or without family help, they are able to invest in a house and start further accumulating wealth for themselves.  Real estate is one of the safest investments there is and being able to put a monthly payment toward homeownership rather than just giving it to a landlord is the ultimate benefit.

Home Upgrades

Under a traditional lease, there isn’t much wiggle room for a tenant to make changes without landlord consent.  Even if landlord consent is given for a project, the tenant may be negatively affected in the end.  If the landlord agrees to pay for any requested upgrades, there will likely be an increase in rent to help cover the expenses.  If the landlord gives consent, but refuses to pay for the upgrades, there are usually two options for the tenant if the upgrades are made. When it comes time to vacate the premises, the tenant must either restore the home to the original condition or leave behind the improvements.  The former would add another expense for the tenant on top of whatever the cost was to initially add the improvements.  The latter would benefit the landlord by adding value to the property and do nothing for the tenant, aside from bringing enjoyment while living there.

Homeowners don’t have to worry about any of that.  As long as there is no HOA to get approval from, almost any reasonable project is possible.  On top of that, any reasonable project should add value to the home.  Some ideas to spur inspiration may include installing solar panels, adding or renovating a pool, turning a room into a deluxe home theater or renovating a kitchen.

Limit of Responsibility

As an argument for renting, anything major that goes wrong with a home shouldn’t be the fault of the tenant.  If tenant negligence is out of the question, then the landlord is most likely responsible to cover the cost of any repair or replacement necessary.  Both landlord and tenant insurance helps ease this burden, should anything devastating happen on the premises.

One of the cons of home ownership is being on the hook for anything not under warranty.  Whether living in the home or renting it out, a reserve budget is necessary in case of emergency repairs or replacements.  This may be difficult to scrape together if the down payment and mortgage payments are high.