Buying vs Renting

987 Words4 Pages
Buying vs Renting The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership. “When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from federal income taxes, and usually from your state taxes” (Home Buyers Guide, p4). Buying a home can be alarming, if you are not prepared, whether for the first time or even for the fifth time. If you take time before going into the process to gain the knowledge needed, one might see that buying a home rather than renting can be smarter in both the short and long term. HUD (U.S. Department of Housing and Urban Development) steps out the procedure of buying a home on their website, with the nine steps towards home ownership. First, calculate how much can be spent on mortgage payments each month, don't for get to add in escrow for insurance and taxes. Know what rights you have offered to you. Find the company you want to have as owner of your mortgage loan. Find the home buying plans available, such as the offer CPP has at Timebrwoods. Search for the home that you want to purchase. Place an offer for said property. Have the house inspected. Find the insurance that fits your needs. And last of all sign the papers to make the house your home. While it is much more drawn out than renting, which entails finding a suitable apartment, applying for it and putting down a security deposit, once the buying process is explained, and understood some find it is a better option (Buying a Home).... ... middle of paper ... ..., physically and mentally when dealing with the initial purchase price,upkeep and labor from repairs. Buying a home is a logical step in progressing towards stability for one's self and one's family. Works Cited Buying a Home. Retrieved May 10, 2010 from http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home Cooperative Housing for Rural America. (1996). Retrieved May 7, 2010 from http://www.rurdev.usda.gov/rbs/pub/cir53.pdf. Home Buyers Guide. Retrieved May 7, 2010 from http://daf.csulb.edu/employees/housing/pdf/home_buyers_guide.pdf Should You Rent or Own. (2004-2007 ). UMUC. Retrieved May 7, 2010 from http://militaryfinance.umuc.edu/debt/debtworks_rent.html Wides,Barry. A Look Inside. Retrieved May 6, 2010 from http://www.occ.treas.gov/cdd/Ezines/spring10/articles/look_inside/cde10spring01.htm
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