In the past, home ownership was seen as the ultimate goal for most people. With the availability of cheap and easy credit, the process of getting a mortgage was almost as simple as other basic aspects of financial planning, such as making sure to compare current accounts on a regular basis. Times have changed, however and people are much more wary about the long-term commitment owning a property can be.
Location, Location, Location
Actually finding a house in a place they will want to live in the long term is one of the first hurdles for buyers. The job market is far from stable and it is becoming much more common for people to have to travel long distances for work, or take on shorter-term contracts. This could mean for a home owner that the cost of travelling to work is prohibitive and makes the location of their property highly inconvenient.
If someone is in a renting situation, then it is much easier to make a move sooner than a homeowner would be able to. Whereas a home owner will have to put their property on the market and hope that a buyer can be found, someone in rented accommodation just needs to give the prescribed period of notice as laid down in their rental agreement and look for a home in their chosen new location.
Hidden Costs of Ownership
However new a property, there will be maintenance involved. This can not only be time consuming, but also extremely costly. A home owner is, of course, responsible for either making good all their own repairs or paying a professional to do the work for them. If the homeowner is in work, then this can be difficult to arrange at a convenient time.
For most rented accommodation the onus is on the landlord to keep the property in a good state of repair and to arrange repairs as necessary. The landlord will have a key and so rather than the tenant having to wait around waiting for a tradesman, the landlord will make arrangements for work to be carried out and supervise that work.
Money, Money, Money
The main thing to consider when buying a property rather than renting is the expenses that will need to be met. Most lenders are now much more cautious about whom they will lend to and so many people will find that mortgage finance is not available to them. Even if it is available, the huge amount that can now be demanded as a deposit often puts buying beyond reach. On top of this, there will be search fees, arrangement fees for the mortgage in most cases, estate-agency fees, valuations and many other financial factors to take into account.
While home ownership is still something that will come to many in their lifetime, there are lots of reasons to consider carefully whether this is the best option for each individual. In harsh financial times, every penny counts and every opportunity – such as making the effort to compare current accounts – needs to be taken to identify potential savings.
While I understand the reasoning here, there is one point you didn't mention: rent goes up every year, sometimes as much as $50 or more. Mortgage payments are much more stable and affected by increases in taxes and insurances unless a person was unfortunate enough to enter into a variable rate mortgage agreement.