By John Campbell

Have you ever struggled with the question of whether or not you should own or rent a home? If so, renting may seem like the more convenient option. You don’t have to go through the complicated and sometimes drawn out process of getting approved for a loan in order to rent. You also don’t have to worry about selling your place when you’re ready to move again.

In today’s inflationary economy, owning your own home has one distinct advantage over renting - it may save you a lot of money on housing costs over time. Assuming your property taxes don’t rise dramatically and your mortgage is set at a fixed interest rate, owning can save you a considerable amount of money over renting in the long run. If you’re renting now there are a lot of things you need to consider.

For starters, landlords have a tendency to raise rental rates with each successive lease agreement you may sign with them. If rising property taxes or the costs of maintaining your rental go up you can count on your landlord upping your rent even more when it comes time to renew. Your landlord might ask you for a lot more than you’re willing to pay when renewal comes along, especially if your landlord is an “investor.” Investors tend to purchase numerous properties with interest only or adjustable rate mortgages to keep their monthly costs down. If mortgage interest rates increase drastically, many of these investors will pass the increased costs of the mortgage on to their tenants. For investors it’s often a win-win situation. They get to profit off of their tenants and have their monthly mortgage paid on the properties they rent out each and every month.

Owning a home and having a fixed rate mortgage shields you from the increased costs of housing that landlords tend to put on their tenants. Although gas, electric and other cost of living expenses may go up for everyone, being able to count on your house payment staying stable month after month is a huge perk for any homeowner. Besides keeping your monthly housing cost stable over time, you may turn a tidy profit once it comes time to sell your home.

If you’re still considering the pros and cons of renting as opposed to owning your own home, consider this - would you rather pay rent every month, have your rates go up at least once a year and see someone else profit from your payment or would you rather pay off a mortgage every month, keep your housing payments stable and profit from the equity you’ve built in your home when it comes time to sell? The choice is ultimately up to you.

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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances. This article may be reprinted on your Web site if the copyright, author information and active link are included.