Buying vs Renting

987 Words2 Pages
bulb-icon

Recommended: Buying or renting a home

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

Show More
Related

  • Caveat Emptor: Rights of Home Buyers in the State of Missouri

    1992 Words  | 4 Pages

    With that in mind, it is important to understand a couple of concepts before analyzing and determining the effectiveness of that document. Although people do not always realize it, the purchase of a home is one of the b...

    Read More

  • Economic Theory in Rental vs Owner-Occupied Housing

    1639 Words  | 4 Pages

    The trend for home ownership is down. Millennials, those born between 1980 and the early 2000s, are waiting longer before buying their first home. (Rent Jungle, 2015) For them, purchasing a home represents a much higher cost relative to income than it did in years past. To illustrate this point, in the 1970s, the cost of a house represented about 1.7 percent of annual income; today that figure is at almost 3 percent. (Rent Jungle, 2016) Single-family home prices are continuing to trend upward (Hanley Wood Data Studio, 2016), making home ownership an unaffordable option for

    Read More

  • Essay On Buying Vs. Leasing

    438 Words  | 1 Pages

    Buying and leasing are two very different approaches to obtaining a vehicle while both have their advantages and disadvantages both can also benefit the purchaser. There are many differences between the two but the primary difference is with buying money is paid to own the vehicle and with leasing money is paid to use the vehicle. According to the site www.towtrucknet.com/financing.htm, of the 15.5 million new vehicles sold in 1998 a record 5.3 million were leased. The three main differences are payments/price,      depreciation value, and valuable differences.

    Read More

  • Dreams of Home Ownership

    725 Words  | 2 Pages

    second or third home, purchasing a home can be a challenge. Some people think buying a home

    Read More

  • FHA Loan Requirements and Qualifications

    749 Words  | 2 Pages

    Whether you are a first time home buyer or a seasoned home buyer, it is important to be aware of the requirements, policies and procedures that could potentially assist you with your home buying needs. As frequently evidenced, the housing rules keep changing. The government keeps proposing new funding programs and the stipulations that need to be met by buyers are ever changing. Staying abreast on these details will help ensure you have a smooth and valuable home buying experience.

    Read More

  • Compare And Contrast Home Buying And Renting

    856 Words  | 2 Pages

    Renting a home is usually cheaper than buying a home. When you rent a property, you don 't have to pay your monthly mortgage dues and you don 't incur expenses on repairing the appliances and home. However, the rent that you pay could increase from time to time. When you have taken a mortgage at fixed rate of interest, your mortgage payment is fixed and will not increase.

    Read More

  • Trials of Being a Homeowner

    814 Words  | 2 Pages

    The housing boom created an illusion of ever increasing home equity. It was difficult to walk away from potential homes that seemed good on the surface, but in reality were either money pits or less than desirable. For the uninitiated, making sense out of the chaos when things start to go wrong is an emotional process that lends itself to the gradual disposal of the rose-colored glasses. The upkeep and maintenance that homeownership requires of the inexperienced homeowner, particularly an older home, is comparable to taking on a new entry-level job with diminishing returns. There is a prevailing chaos amid the turmoil of a broken water pipe during a holiday weekend.

    Read More

  • The Real Cost of Home Ownership

    1301 Words  | 3 Pages

    Because of the high prices of homes in the United States, people often focus on only the buying price when considering the costs of owning a house, and neglect many other aspects of home ownership. A house is not your regular item that you buy and store or use for a limited amount of time. Houses come in a package with upkeep costs and taxes, and it’s wise to take these into account when analyzing your finances.

    Read More

  • Renting Versus Buying

    807 Words  | 2 Pages

    Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.

    Read More

  • Analysis Of Homeless By Anna Quindlen

    1196 Words  | 3 Pages

    Having a house and having a home used to coincide. Families used to live in the same house for generations, but now the sentimental value of having a house has changed. As Quindlen puts it, “There was a time when where you lived often was where you worked and where you grew the food you ate and even where you were buried. When that era passed, where you lived at least was where your parents had lived and where you would live with your children when you became enfeebled” (Quindlen 215). However, over time even that changed. Now we have grown to live in a house and then move on like it was nothing. Sentimental value for a house has dwindled. Quindlen demonstrates that “suddenly, where you lived was where you lived for three years, until you could move on to something else and something else again” (Quindlen 215). However, for those without a house, they would give anything to have that sentimental feeling that used to come with having a house. But that’s just the problem; for most a house and a home no longer coincide. We can own a house but not have a home, or vice versa. After all, “Home is where the heart is. There’s no place like it” (Quindlen 214). People can have a home without having a house. A home simply means having a family,

    Read More

  • The Ethics of Rent Control

    905 Words  | 2 Pages

    Ethics, according to the Oxford dictionary is “a set of moral principles that govern a person’s behavior or the conducting of an activity”. Ethics consists of doing what the law requires, following the standards of behavior our society accepts, and also has to do with what you believe is right or wrong. Rent control is not unethical, but is very controversial. If on one hand it is a good thing because it prevent landlord from being unethical charging the tenants unfair rent price, on the other hand it is unfair for the landlords to be imposed a rental price below market price which he/she is morally entitle to. Rent control can create several problems not only for the landlord but for the economy as well.

    Read More

  • Buying A Home

    1232 Words  | 3 Pages

    Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.

    Read More

  • Pros and Cons of Buying a Home

    1906 Words  | 4 Pages

    An option for individuals look are looking to buy property have the option to purchase a house. The advantages are: “pride in ownership, privacy, own land, tax benefits, fixed rate, security, and can renovate to their desire. The disadvantages are: less flexibility, mortgage has interest, more stress about money, requires down payments, closing costs, and moving costs, need to have a fixed income/stable income, and bank may take over house if payments are not made” (Zillow, May 12th 2012 ). Pride of ownership is advantage because it gives those individuals accomplishment feeling and shows their hard work paid off and do not have to deal with landlords anymore” (Free Advise Staff, unknown date). Privacy is another advantage because it gives the homeowners the freedom to do whatever they wish and not worrying that they will break the rules. Owning land is an advantage because “every time you pay off your mortgage individuals are gaining equity and increasing your assets” (Chapman’s lecture, unknown date). Another advantage is individuals will get a “tax benefit which will help pay off the interest of the mortgage and increases income” (Kirlew, Unknown date). Security is an advantage because in the “long run if some individuals want to have kids those individuals do not have to worry about moving each year, but instead helps their children grow up in a ...

    Read More

  • How To Buy A Home

    1788 Words  | 4 Pages

    Buying a home is something most people do at least once in their lifetime. Many people dream of buying their own home. The amount of new homes has grown tremendously and many people are buying houses. The median price of homes in California is approximately $500,000. The conventional way of buying a home is a procedure that takes a lot of time and patience. There are a few steps and procedures that are included in buying home. It includes getting pre-qualified by a loan agent to determine the maximum dollar amount of mortgage you can truly afford (real important step in the process), seeking a realtor, searching for homes, making offers, hiring a title company, an appraiser, home inspector, termite company and opening and closing escrow and other various services that benefit both buyer and seller. Buying a home is a complex process and most consumers do not know where to start and lack the education in regards to it.

    Read More

  • Descriptive Essay About Home

    1020 Words  | 3 Pages

    It also provides the emotional link that I need to relax and a sense of comfort behind the closed doors of my home. I feel that these are the bricks that should be laid in every home and should be remembered in order to truly know what a home is or should be. I believe the feelings that are attached to me being at home do not come with a price tag, but it provides me with the different resources I need to help to shape my environment. Ultimately, things such as comfort, pleasure and a sanctuary are priceless within the walls of a

    Read More

More about Buying vs Renting

Open Document