A lot of see owning a home as an asset but that's not always the case. Sometimes that asset can become a burden and you have to change the way you are heading. If that means selling a property and going renting then so be it. You can't look at it as losing an asset but more that your gaining financial freedom that you couldn't afford before.
Well for one it leaves your children with the house as inheritance instead of just an empty bank account. The house always has upkeep costs and the mortgage has interest, but anything that you pay that doesn't go into one of those (ie. goes into reducing the mortgage) is money that is being put into use for YOU, not for someone else.
There are differences between living in a home in your name that you are buying vs renting - some very good, such as buying being an investment that builds up equity, along with privacy and being able to do pretty much whatever you want in your own home vs one you rent from someone else that comes with all sorts of conditions and non-financial strings attached. Some differences are perhaps not so good such as being responsible for maintenance, repairs, liabilities, property taxes, and homeowner's insurance. It's a tradeoff. The most important advantage to me is that you build up equity, and you have the freedom to cash out on the equity if you ever do want or need to move elsewhere. A home you own (or are buying) is an investment and an asset that usually appreciates in value and builds up equity that can be cashed out or transferred to heirs at death... and like any asset that builds up equity and appreciates, it contributes to your net worth.
No matter which way you go, technically you will ALWAYS be renting even if you "buy" a house. You are going to be paying property tax on your bought home for life, so either way it's about the same.
Good point. Also, the house isn't actually yours until every last penny of the mortgage is paid. for the average person, that's around 20 years. You are essentially in a "rent to own" agreement with your mortgage provider.
The only time I think its better to rent is when you unsure of where you want to live, or if you know you aren't going to be in one spot for a long time. Otherwise, I definitely think ownership is smarter. Gives you the opportunity to make money and provides stability. It is a big responsibility, though.
