Are homeowners happier than renters?

Is there conventional wisdom on renting versus buying? A resounding yes is absolute from several tenants, but an equally loud yes also resonates from others. While the advantage of renting seems obvious to many tenants, many homebuyers contradict this notion, and the rent-or-buy debate never ends. Whatever reasons people have in choosing renting over buying or vice-versa, in the end, the answer to this question is what matters: “Who is happier, homeowners or renters?”

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This article from MSN Real Estate recounts some theories to answer this question.

 One theory is that renters are happier than homeowners because they don’t have to worry about mortgages and foreclosures. Although home ownership is a wise investment move, mortgage payment takes much of people’s income, making their homes as the only financial investment they can afford. This leaves them no way of investing in other properties or services as their needs dictate. They may even have to face the pain of foreclosure, should worse comes to worst.

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Another theory points out that homeowners are happier than renters because they are richer. Fortunately for them, this is generally true. MSN revealed that the median net worth of a homeowner in 2012 was over 34 times that of a renter. Data released by the National Association of Realtors stated that a homeowner has about $174,500, while a renter has $5,100. Buyers have a reason to be happy, indeed. 


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Yet, a 2005 survey affirmed that renters spend more time with loved ones. Meanwhile, another study said that homeowners have higher self-esteem.

In the midst of this argy-bargy, no one wins. If property ownership is a gauge of happiness, then so be it. But people have to be open to other options and see beyond what money can buy.  

Whether you are buying a house or renting an apartment, there is a plethora of choices that suit your needs. Find the best deals and options for you from this Jeff Yarbrough Facebook page or this website.

Real estate tips: Selecting the right rental

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Housing prices and interest rates appear to be at historic lows, indicating that now could be a great time to buy a home. Why not, if you can afford it, right? But what if other considerations point to the practicality of renting rather than buying?

Many find renting too inconvenient because of the shortness of lease contracts. Hence, renters tend to move frequently. However, there are times when renting is better than buying. Here are some reasons why:

• It offers flexibility in times of financial uncertainties and seasonal employment.

• Selling a house is harder than leaving a rental.

• Mortgage qualifications fall short.

• There’s lack of time for sustentation.

• Trying out a new area requires acclimatization to it.

• When a couple is an empty nester.

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This wisdom in renting is applicable in times of job changes and losses. But how can you find the right rental? Zillow suggests determining what kind of rental suits your lifestyle before searching for a place. Finance writer Michelle Schroeder knew clearly what she wanted before she signed the lease contract. “We knew we wanted a house so that we could have a dog. I was a naive 18 year old, but luckily a family member was looking for a reliable renter,” she quipped.

Think of your long-term budget and the property's affordability. You should also compare properties and negotiate contracts to get a fair share of the arrangement. Check out the potential property by attending walk-throughs.

By keeping in mind these simple steps, you can avoid the most common pitfalls when looking for a rental, from signing your tenant agreement to moving in and out.

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Jeff Yarbrough has built an impressive client base from his impressive knowledge of unique geographic locations with competitive properties either for rent or purchase. Learn more about his real estate practice from this website.