Everyone needs somewhere to call home, a place of their own and whether you buy or rent, you want to be comfortable, safe and enjoy spending time there. While there are some people who prefer being on the move, living out of suitcases in hotel after hotel most people like to have a home of their own. It doesn’t need to be a mansion with a home lift – even if that is their own caravan, motorhome or live aboard boat, the common denominator is that it is theirs.
In some European and many Asian, African and Latin American countries, renting is more common than home ownership. Germany for example has only 42% of the population owning their own homes and countries like India, China, Argentina, Chile, South Africa have even fewer home owners. The tenancy laws in some of these countries often favour the tenant and ensure long term security in ways that make renting a far more attractive proposition than owning your own home. In others it is because there is a higher percentage of very poor people.
While tenants don’t have the ongoing expense of property maintenance and expenses such as rates or adding tenant requested items such as security alarms and doors and flyscreens, they also don’t enjoy the capital gains that accrue from property ownership. In these markets, rents are usually far less than mortgage payments and renters can invest their extra cash in various ways to make up for not having bricks and mortar behind them.