Own or rent a home - what makes people happier?

This question came as feedback to this recent post “How to improve lifestyle by cutting living expenses?” The sender made two good points in favor of renters by saying

· Homeownership becomes a burden, when prices are going up, and

· Lower rents offer better saving options for the retirement

Own or rent consider this;

Prices are going up

Like it or not, who lives in a house pays for it at any given price level. The amount of money you have to pay depends on your chosen comfort and standard. As renter you have two options pay or move. Read more why.

Home owners can enjoy the freedom

of creating a personal space to the comfort they prefer by managing expenses. Being in charge home owners can defer spending money within their budget or even convert expenses into income for instance by renting out a guestroom to a student.

Lower rents offer better saving options

Yes — is the answer in theory. Statistic figures tend to prove that being wealthy starts and ends with home ownership. That contradicts with the fact that renting is not so pricy than paying for house and mortgage.

That renters statistically fail more often than home owners in wealth building relates to attitude and money spending habits. If you live in a budget apartment and spend your money on cash producing investments, you would create more cash than paying off the mortgage for owning house.

Home Owner or Renter who is happier?

Conventional wisdom is that homeowners on average tend to be more satisfied with their living conditions and are involved in their communities. Happiness and ownership are positively and statistically significantly related.

As you possibly agree, owning a home is an expensive proposition as long as you pay interests on your mortgage. But it is the freedom in your own house to do things you enjoy such as painting walls in you preferred colors, having a garden, extend your home with something to feel better or more comfortable.

Doing something for your family’s lifestyle is the smartest use of money and time. And that makes people happy, too. Why wouldn’t you agree with that?

Also happiness is the feeling to have accomplished something and the main driver to pay off a mortgage is financial and emotional security. That is why owning a home shapes attitude and life more than anything else.

There is no doubt Feeling Happy and Money are related — but for sure you can’t buy happiness.

Klauster

Own or rent, home owner or renter – who is happier? Is it freedom in your own house, managing housing costs and saving for retirement or is it the flexibility to rent? What makes you happy?