Renting vs Owning a House: Know the Difference!

Renting vs Owning a House

Upfront Cost

The upfront cost of owning a home is huge in the form of down payments. In comparison, there is no upfront cost in renting a home. A fixed sum goes out of pocket each month. Hence, owning a house leads to a one-time large cash outflow. This contrasts with renting a house where finances are well in place, and there is no one-time financial burden. However, if you opting for a home loan, you will have to pay monthly EMIs.

Maintenance Cost

When you live in your own house, you need to take care of all the maintenance expenses, no matter how huge. Whereas, when living in a rented facility, in most cases, the maintenance cost has to be borne by the landlord. This is particularly beneficial when the property frequently demands significant repairs and maintenance. 

Relocation & Flexibility

When you live in a rented house, you can relocate with ease as and when the situation demands. Suppose you got transferred from your job and are now supposed to relocate to another city. This would be an easy task if you were previously living in a rented flat. Whereas if you live in your own house, you cannot change houses frequently if the situation demands.

Changes in the Value of Asset

If you live in an owned house, the value of your home might rise or fall depending on the market conditions. But usually, property prices rise over the long term in sync with inflation. Hence this will lead to a rise in your net worth as property prices rise. In contrast, there will be no impact on your net worth if the prices of the property you rent rise.


When you own a house, you can customise the interiors and the furniture and design your home the way you desire. However, this is not the case with renting a house. You have to live in an already-built house owned by your landlord. Hence no customisation is possible. 


These are some of the differences between owning versus renting a house. A look at these differences before making a decision can help! Not only the financial but the qualitative aspects also need to be considered.

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