Is Renting Throwing Money Away?

Home ownership is a priority for many savers, but renting can provide flexibility and freedom. We look at the pros and cons of renting and owning a home

Jonas Lindmark 5 November, 2020 | 10:03AM

rent or buy

In countries with large historical home price increases, people tend to see ownership as clearly better. But there are still strong arguments for renting, both for young and old.
Yes, there are many advantages of owning your home. But renting brings other advantages, that to some people are even more important. What argument weighs most heavily for you probably depends a lot on your age.

But first, before discussing the argument for and against owning your home, it is important to be aware of the genuine uncertainty about future home prices. And the risks this creates, depending on how long-term your ownership is. Looking around the world, there are extreme differences in price movement in local housing markets.

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About Author

Jonas Lindmark

Jonas Lindmark  has been editor and head of fund analysis at Morningstar Sweden since August 2000. Before that he was personal finance editor and designed fund ratings during 9 years at the weekly business magazine Affärsvärlden.

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