Buying Versus Renting

In: Social Issues

Submitted By mlms0811
Words 730
Pages 3
Renting vs Buying

There are advantages to buying your own house as well as advantages to renting a home. With that being said there are also disadvantages to each. The pluses and minuses can be financial, personal or simply a matter of convenience.
Advantages to buying a house of your own could include the equity you are building, you can customize however you want, you can have some stability, and the value of your house can increase. When you buy a house you can build equity in the property. Simply stated, this is the difference between the value of the house and the amount you owe on a mortgage. This equity can be used if ever needed as a line of credit or eventually you will be able to put your house on the asset side of your balance sheet. When you own a house you can choose to tear down walls, paint the walls whatever color you want, or remodel the kitchen to your perfect specifications with no limitations, besides your budget. Also, when you buy a house, you don’t have to worry about the owner selling the property and the new owner wants you out of the house. There is no worry about your rent increasing, landlord not renewing your lease, or having loud neighbors if in a multifamily house. The last advantage is your home can increase in market value, possilbly making it worth more than you paid for the house.
Disadvantages to buying a home could include paying for all the repairs, expensive mortgage payment, and value could depreciate. When you own a house and your furnace goes out on New Year’s Day it your responsibility to call the HVAC tech out and to pay him for a holiday and off hours for a service call. There is no one else to pick up the tab if anything breaks in your house, you are the one to pay for the repairs. A house is the largest purchase most people will make and most will spend 30 years trying to pay off the mortgage. Another…...

Similar Documents

Renting an Apartment vs Buying a Home

...Renting an Apartment versus Buying a Home Composition II / 156 March.20, 2011 Outline for my Essay Why should we buy a home vs. rent an apartment? There are a lot of factors to consider for both. There are a lot of steps to finding out what you would want if you buy a home and if you rent an apartment. The factors can be overwhelming and yet very important. So the first thing you need to do is get all of the information that you are looking for and put it down on paper. Then you need to weigh the pros and cons of them. Just to make sure you understand what it is you have gain and give up for each type of dwelling and how you want to own it. You also want to look at the financial part of it as well. Make sure you can afford what you are looking for or look for what you can afford. In the end you will be able to logically decide on what to do with your dilemma. So there are many factors however there are also the benefits and what you want to be responsible for and not be responsible for. So the choice is up to you and only you can make it happen. I am just giving you the information to make an educated decision. I rented for years before my husband and I decided to buy a home. It came years after and when our daughters were elementary age. I enjoy being a homeowner however I also enjoyed renting cause of not having to worry about doing all the stuff the apartment complex had to do because I paid rent. This is just a scratch on the surface of the......

Words: 2057 - Pages: 9

Buying or Renting: Which Is Better for You?

...Buying or Renting: Which is better for you? Your Name Com/156 Current Date Your Instructor Buying or Renting: Which is better for you? Introduction Many times we are faced with the challenge of choosing between buying a home and renting one. There are various advantages and disadvantages related to each of these options that an individual has. It is the dream of each individual to own a home in a good environment which is secure and peaceful. There are two options that one can choose from when considering a home. One can either rent or buy. It is important to carry out a thorough investigation on each of the options and make an informed decision. The decision of buying or renting any asset is crucial and should be critically analyzed. Therefore, it is important for one to take into account the benefits and costs involved in each option before deciding on the one to take. One might choose to use a buy vs rent comparison tool such as the mortgage calculator that can be provided by a lender or real estate broker. The Rent versus Buy Comparator allows the user to compare their estimated financial position after 7 years of renting with their estimated financial position after 7 years of home loan repayments (, n.d.). This tool will allow the buyer or renter to compare the possible financial cost and assists in making the decision whether to buy or rent. Moreover, most finance calculators will take into consideration the rent, rent insurance,......

Words: 1600 - Pages: 7

Renting vs Buying

...11002 Cook Ln Sacramento, Ca January 27, 2013 Attention Director of Consumer Affairs Jet Express Airlines 6001 Airport Highway Raleigh, NC 27134 Dear Mr. Donavan Johnson: CONCERNING QUOTED DIFFERENT AIRLINE FLIGHTS Jet Express Airlines has recently sold me a flight with 3 different quotes and although I paid the highest quote for the ticket due to the severity of the flight arrangements, I am requesting reimbursement of the expenses I incurred from the high end quote. On January 26, 2013 I called Jet Express Airlines and spoke with a representative named Joyce. I explained to her that I wanted to fly to ST. Louis, Missouri, on Sunday June 7 and on June 11 fly from St. Louis to Nashville Tenn. Returning back to Sacramento, Ca., on Sunday June 14. Joyce quoted me $790.00 and all I had to do was confirm with a call before midnight the next day. I called back within 24 hours to confirm my reservations, this time I spoke with Jonathon and he could not find my reservations at first then he found them and told me that the reservations had been cancelled. I assured him it hadn’t been 24 hours. Jonathon began to tell me he couldn’t get me the same deal as Joyce was able to find for me. He could do the same thing for $38.00 more. I agreed to the reservations and gave him my credit card information to guarantee the fights. Jonathon agreed and said he would email me the confirmation. Received the email 2 hours later and Jet Express did not include the June 11 leg from St.......

Words: 344 - Pages: 2

Renting vs Buying

...Compare/Contrast Essay: Renting versus Buying Renting a home allows renters to pay someone to live in their home for a period of time. Buying a home allows homeowners to pay someone to gain ownership of their own home. There are pros and cons to both renting and buying. It is a great idea to weight the advantages and disadvantages of both. This process will help to determine whether renting or buying will best fit their needs. In some ways renting and buying could be compared. Potential renters or buyers are able to choose the neighborhood they wish to live in. Some prefer to become longtime renters and are able to live in a neighborhood for long periods of time. Homeowners purchase homes within a community with the intentions of staying there for years. Both require money and paperwork upon moving in. Renters have to pay the first month’s rent and a security deposit to move in. They also have to fill out a rental application and sign a lease. Homeowners have to provide a down payment as well as pay closing costs upon moving in. They also have to fill out a loan application and sign their mortgage. In addition to comparisons, renting and buying are different in many ways. For instance when renting, the renters are not responsible for any maintenance of the home. Any maintenance needed is the responsibility of the landlord/superintendent. This saves the renter the headache of having to locate someone certified to fix the plumbing or the central heating......

Words: 857 - Pages: 4

Buying vs. Renting

...Buying Versus Renting Ashley Mawhorter 1/11/2011 Axia College of University of Phoenix Every American has dreamed of owning their own dream home, whether they are young or old. Still many Americans choose to rent apartments. Why is this? There are many more pros when individuals decide to buy a home. That is why buying a home is a better option than renting an apartment. Jumping right into the first home one sees is also not the proper way to buy a home. Much time and research needs to be done and many things taken into consideration before deciding the best decision. Do I want to have a landlord, or be the landlord? How much can I afford if I choose to buy a home? Where do I want to be located and what style home am I looking for? Are there any pros and cons to buying verse renting? How much would property taxes be yearly? These are all important questions to take into consideration, and that will be covered in paragraphs to come. First and most important is figuring out how much each individual can afford. On there are two calculators that can help to determine individual financial status. The first calculator helps individuals to determine the advantages and considerations of owning verse renting a home ( Using the calculator I have come up with an example. If I were renting a home that cost 800 dollars a month and I wanted to buy a house I found for 100,000 I would simply calculate the percentage of down payment, length of...

Words: 1361 - Pages: 6

Buying Is Better

...Owning a home offers many benefits not available as a renter such as pride with ownership, qualifying for special tax breaks, and saving money. Renovating property is one example of expressing the freedom available to a homeowner that renters do not have. Many tax breaks are only available to homeowners for many reasons including deductions for mortgage interest, First-Time Home Buyers’ Tax Credit and deducting expenses by having a home-based business. The amount of money saved considerably outweighs the money spent on renting a house or apartment. Not only does one save money , but the money is equally invested. Money saved by owning a home grows in many ways. Additional benefits not relating to money, such as a feeling of worth or inclusion in community decisions are positive reasons for owning a home. Spending money on rent when one can afford to buy is not the best financial decision. Though renting property relinquishes the renter of most responsibilities the benefits are few. When a person saves money to buy a house, that person takes pride in the amount of hard work accomplished to attain the goal of purchasing the house. Owning property “instantly” makes the owner a part of the neighborhood and community, along with its social advantages” (Hudson Valley Business Journal, 2/25/2008 Supplement, Vol. 19, p4-4, p. 1). One may choose to make valuable decisions when becoming part of a new neighborhood that help mold the area into a safer community. Such decisions......

Words: 1017 - Pages: 5

Renting vs Buying

...Renting Vs. Homeownership Jasmyn Gould ECPI University Online Thesis: Most people would either like to rent or become a homeowner, but there are several factors that need to be address before making the decision; these reasons include financial status, lifestyle, tax deductions, privacy, commitment, savings, utility cost, and a whole lot of research. Today’s housing market is on the rise, so this is the time to jump in or is it? You are probably asking, what advantages do I have if I purchase a home or rent? What would be better for me financially? It is important to know some facts of renting vs. homeownership before making such an important decision. Homeownership is not for everyone. I believe it’s up to the individual if they want to rent or buy. In some cases people are just better off renting. Before buying a home, it’s important to consider how that purchase will affect your finances and your lifestyle. Homes typically increase in value by allowing you to build equity in it, which will offer an investment for the future. Every time a mortgage payment is made, it is applied to your balance which reduces the loan that was taken out. Your monthly costs are usually more predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Which means, the monthly amount of your mortgage will not increase for the duration of the loan. An article from TurboTax said (2013), “You know that you can get an income tax deduction on the......

Words: 1140 - Pages: 5

Why Renting in Today’s Economy Is Better Than Buying a House

...Why Renting in Today’s Economy is better than Buying a House Matt Harrell COM/156 November 7, 2010 Karen Campbell Why Renting in Today’s Economy is better than Buying a House Foreclosure crisis is at an all time high across most large metropolitan areas in the United States. Seattle- Tacoma- Bellevue metro area registered the sharpest annual increase, 71% or one in every 129 households received a foreclosure notice. California, Nevada, Florida, and Arizona remain the hotspots for foreclosure across the nation according to RealtyTrack Incorporated Rick Sharga a senior vice president at RealtyTrack quoted “The epidemic is spreading from the states at the ground zero of the foreclosure problems out into areas that had not been previously affected.” One of the latest signs that the foreclosure crisis is worsening across the nation is, high unemployment, slow job growth, and homeowners are uncertain about falling home prices. Concerning housing, he or she has options. He or she has an option to rent and an option to buy. Renting an apartment is a better option than buying a house both renting and buying has many advantages and disadvantages. By explaining these advantages and disadvantages, I will persuade him or her into renting over buying. While renting he or she can save money, instead of spending money. “A survey conducted by Harris Interactive for the National Apartment Association in May 2010 found that 76% of those surveyed now believe that renting is a......

Words: 1122 - Pages: 5

Renting Is a Better Option Than Buying a House

...Renting is a better option than buying a house. I choose this topic because I have experience in renting and I have experience when it comes to purchasing a house. I believe I will enjoy this subject. In my paper I will show how much it will takes to rent an apartment and how much it takes to buy a house. I will research different real estates. I will ask people that I know that has purchased a house recently. I will gather as much information as possible. It's a good idea to start my essay with a really interesting statement, in order to pique the reader's interest. The next few sentences should explain my first statement, and prepare the reader for my thesis statement. My thesis statement will provide a clear point of view. Next I will look over all my research and my notes so I can organize everything. If I have enough material to sustain my thesis statement, I will organize my research and my notes now I have come up with a conclusion that my audience won’t forget. I will have to be aware of the possible counter arguments that would go against what I am trying to say. I need to plan ahead for oppositions. I will try to hook my audience in my first paragraph then, I will slowly draw them in throughout my entire essay until the last paragraph. I will do some serious brainstorming so I can get to the point that I am seeking. I will read and revise my essay to check to see if it flows the way I want it to. I will check for typos and grammar errors. I will make sure that I...

Words: 354 - Pages: 2

Renting Verus Buying

...HOW RENTING AN APARTMENT VERSUS BUYING A HOME BENEFITS ONE’S FINANCIAL PLAN TOWARDS PURCHASING A HOME IN THE FUTURE. How Renting an Apartment Versus Buying a Home Benefits One’s Financial Plan towards Purchasing In The Futu We apprehend a vast amount about renting an apartment versus buying a home. Each advantage and disadvantage is deluged with persuasion on the process of making renting or buying as uncomplicated as possible. Many individuals do not believe renting is the better alternative. Renting property whether it’s an apartment, condo, townhouse, duplex, or home does not allow the person to own while renting, or build equity within the property. The ability to purchase a home is a great milestone of achievement for any individual. However, renting to start off when you first move out from your parent’s home is the better option for an individual’s financial plan for today and the future. It too can better position an individual to purchase the home at a time when it’s most feasible to their budget for benefits financially. Renting should be considered from various aspects such as size, maintenance, relocation cost, and financial growth. Size is the largest contributing factor for reasons to accommodate all parties residing in the unit. It will demonstrate how buying a home in square footage in comparison to the mortgage would be greatly higher than renting. Generally, apartments are larger in square footage and cheaper according to price in essence to......

Words: 663 - Pages: 3

Buying vs. Renting

...2010 Individual Assignment COM176 University of Phoenix Buying a house is better than renting an apartment In today’s society, buying a house is better than renting an apartment. Buying a house is an investment that pays off in the long run. Whereas, renting is more in the “right now” and you pay a monthly rate depending on the apartment guidelines. Most people, mainly the average person, would purchase a home for many different qualities. These qualities would consist of or somewhere down the lines of having ownership, investments and payments. First, purchasing a house would give one the sense of having ownership. Ownership is having the legal right of owning something, in this case owning a house. Owning your own home allows one to have a piece of mind. Giving them the freedom to do whatever it is they may want to do such as creating a garden, building on to their home, or placing an out door pool in the backyard etc. Meanwhile, renting will not get you ownership. You are temporally renting a large amount of space. Renting does not necessary give you a piece of mind, but it allows you to sleep at night. Renting also does not allow you to plant a garden, build on, or place a pool on the lawn. Therefore, buying a house is better than renting because you own your own space and can do whatever it is you want the way you want. Secondly, buying a house is better than renting because of the investments. Investments are usually created by putting......

Words: 528 - Pages: 3

The Advantages of Buying a House over Renting an Apartment

...The Advantages of Buying a House over Renting an Apartment Com/172 The Advantages of Buying a House over Renting an Apartment Buying a house for most is the American dream, but with today’s economy many people are unsure if the dream can be obtained. The main concern for most people would be the financial responsibility. Many people believe that the financial responsibility is overwhelming and they are just not ready. Although some people believe they are not financially ready to purchase a home, buying a house is a better option than renting an apartment for three main reasons. First, becoming a first time home buyer can be a very exciting experience that can have a positive long-term effect on some one’s life. Second, a home buyer can make any modifications or changes to a home. Third, and most important, you will eventually own your home. With those three examples, I will show the advantages of buying a house over renting an apartment. The first advantage to buying a home verses renting an apartment is that first time home buyers usually receive incentives or rewards for being first time home buyers. If the home buyer is purchasing a newly built home, usually the builder will give little incentives such as appliances in the home, a gift card to purchase new items for the home or even interior upgrades to the home. In recent years, there was a huge increase in the home buying market. This was the first time home buyers tax credit approved by the federal......

Words: 1139 - Pages: 5

Renting and Apartment Is a Better Option Than Buying a House Argument

...Renting an Apartment is a better option than buying a House (Week 2 Day 7 Assignment) Is renting an apartment a better option than buying a house? My argument is buying a house is a better option than renting an apartment. The point of view will support my topic by including facts, statistics, examples and details. The point of view will include the pros of buying a home versus the cons of renting an apartment, such as buying a house is an investment versus throwing money away, buying a house can be a tax deduction, buying a house is an investment you can live in, having a fixed mortgage rate in buying a house is a better financial option than having to deal with the inflation of rent every lease renewal, last but not least buying a home will allow you to update and upgrade as you wish, inside and outside. My point of view will also include facts and evidence against the opposing position. An argument cannot be one sided. Including evidence such as an apartment is rent and rent is money that is not an investment, you can add up all the rent you have paid in the past twenty –five years and have nothing concrete to show for it versus paying a mortgage for the past twenty-five years and could own the house in another five in most cases. In an apartment you cannot upgrade as you wish, you may risk rent increasing every year upon the lease being renewed and new management can take over and you lose your apartment. With a house, you get a garage, with an apartment you......

Words: 384 - Pages: 2

Renting an Apartment Is a Better Option

...Renting an apartment is a better option than buying a house Home buying is not for everyone in today’s economy renting versus buying depends on many factors such as how much up front money is available to you, how quickly buying or renting will rise, and how long you plan to live there. Inflation has made buying a home more difficult because the credit standards are much higher consequently these circumstances has made renting a better option than buying for the ones that are on their own for the first time, buying a home is a future dream and because there are many cost associated with home purchase, we have to consider which is more beneficial to your bottom line. Weigh the facts with a caveat that something’s are not as great as they sound, and weigh the options so that there are no surprises when that moment comes. Some might see renting as throwing your money away, but realistically speaking, if your credit is near perfect then the best choice for anyone who is not credit worthy, is to rent an apartment. There are a lot of reasons that shows that it might be a better option, but this shows that you have to be effective. Another point to remember is how long the buyer has to save up for the down payment so that they are limited to other investing that could be making large profits. Renting is much easier because you don’t have to all the up front cost or have the best credit, and if you are looking to stay between five to six years then the better option is......

Words: 342 - Pages: 2

Buying Versus Renting

...Why should you buy a house? You should buy a house instead of paying rent for an apartment because it more of a better choice. Why would you rent an apartment and you can have a piece or property that you own yourself. Why make someone else rich and wealth off of your hard earnings. Buying your house will not only give you ownership but a sense of comfort. You can have the freedom to do what you like, make changes you would like and don’t’ have to worry about any noise or complaints or issues with other tenants. Having a house also provide you with stability, overall, this is the most important factor why a person should buy a house versus renting an apartment. Just imagine dealing with a landlord or building management, who wants to sell the building because they are unhappy with the outcome. Because if that you may have to uproot you and your family to another place, cause your life to be unbalance. Who wants to have to worry about finding a new place and paying for moving expenses? Buying a house will give you control of living by your own terms and not someone else’s. You can grow a garden of flowers or veggies or probably want a garage to store your car and storage. Any money invested in your own home is better than getting someone else rich off your money. You can use your house as collateral or have the ability to borrow against it in the near future. You also accrue equity which is your when you sell. A house can also build your credit history....

Words: 278 - Pages: 2