TITLE: Home Ownership vs.

Renting - Pros and

Cons

Chintanbhai Vallabhbhai Dhameliya

Conestoga College

Student ID: 8951043

BUS8148 Client Communication

Paul Ingram

June/14/2024

Client: Hey there, good morning.

Advisor: Hello, very good morning. How can I help you?
Client: I am looking for a house. Should I purchase a home or rent a home? Unfortunately, I do
not know which is best for me. Could you please provide me with some information on this
matter?
Advisor: Sure, home ownership and renting depend on your financial situation and standard of
living. I would like to discuss the pros and cons of home renting and home ownership.
 Pros of ownership:
-Assets: For example, when you purchase a home at that time your assets will
increase assets. It is one type of investment.
-Security and Stability: Homeownership provides you with the security and stability
of a home, in you apply for a fixed-rate mortgage and a stable life.
-Control: Homeowners have more control over their house, and have some
restrictions as compared to renting a home.
-Tax benefit: They may be liable to reduce their tax deduction. Such as interest and
property taxes.
 Cons of ownership:
-Fewer Flexibility: Homeowners have less flexibility compared to renters. In this
situation, the sale of the home takes a long time and sometimes homeowners face
financial losses due to the market.
-Depreciation: In this risk of depreciation. It reduces the price of the house.
-Market: The estate market is very affecting homeowners. Homeowners may face
changes in the value of their property, and it will affect their financial situation.
 Renting home:

 Pros of renting:
-Flexibility: it gives more flexibility compared to ownership. A tenant may easily change
their place of live at the end of the lease.
-Fewer costs: In this, they don’t need the downpayment and cost. The renter may pay a
lower cost in comparison to the owner.
-Prediction of expenses: Renters predict their expenses and lenders are responsible for
maintaining a house.
 Cons of renting:
-Lack of equity: Tenants don’t build their equity because they are not owners of the
property.
-Less control: Tenants do not have any type of control over the house. They cannot do
anything in the house without permission.
-Rent: Lenders can increase the rent of the house. It is not good for renters.
- No tax benefits: There is no tax benefit for tenants. Renters are not liable for tax
deductions. It is related to homeownership mortgage interest and property tax.