The Advantages And Disadvantages Of Buying And Renting

736 Words2 Pages
bulb-icon

Recommended: Renting vs buying compare and contrast

In this paper, I will be investigating the advantages and disadvantages of buying a home compared to those of renting. Then, I will draw a conclusion of which option is the most beneficial in today’s real estate market. Finally, I will examine the role of conducting a title search when making a home purchase and discuss the importance of ensuring it is complete.
Buying or Renting The main advantage to owning a home is the security blanket feeling one gets from being a home owner, having a stable base from which to raise a family, having a “home sweet home”. For generations, it has been a tradition to buy a home as one’s family begins to grow, a sign of progress and stability. On a financial basis, a home can be considered a storage of wealth, using a mortgage as a forced savings plan, increasing the equity as mortgage payments are made. Tax deductions are also an incentive to purchase a home especially in the earlier years of paying off a mortgage when much of the interest is being paid, and subsequently deducted from income tax. Home ownership can also allow access to home equity loans, that afford lower interest rates than some other debts and are also tax deductible (Trulia. 2014, February 28). Most …show more content…

In some cases, the landlord may not be compatible with the tenants or may be reluctant to make much needed repairs to the home. After comparing the advantages and disadvantages of buying and renting it becomes clear that despite the advantages of having a place to call your own, financially renting is a better choice. With the money that would have gone into buying a home going towards other investments, a nest egg of greater value than home equity can be achieved in the same amount of time. Also, renting allows for more flexibility to face the unpredictable changes of life.
Title

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

  • The Case Of The Toronto Housing Market

    709 Words  | 2 Pages

    The housing market is very unique as unlike other goods and services, houses have permanence, it is a fixed location good causing the rules of supply and demand to be taken to new extremes. In the case of the Toronto housing market we can view in almost real time the role supply and demand play on he ever increasing house prices, additionally the fundamental economic issue of scarcity is made extremely apparent by the limited size of the city of Toronto.

    Read More

  • Analysis Of The Mansion: A Subprime Parable By Michael Lewis

    487 Words  | 1 Pages

    In the essay “The Mansion: A Subprime Parable,” Michael Lewis unfolds the real face of the American dream. He talks about his own personal experience in his look out for a house and his struggle with the house he rented. Most Americans have bought houses they cannot afford. Banks offered loans, they have lent mortgages that many don't have enough financial resources to pay them back. Agents have falsely guaranteed that real estate prices will be in constant rise, they promised them that there will be no declination in prices.

    Read More

  • Similarities Between the Great Depression and the Great Recession

    974 Words  | 2 Pages

    In conclusion, we have determined that the housing crisis that the United States faces today is a huge problem. We have discussed the striking similarities between the Great Depression in the 1920s and 1930s and today's problem. And I have presented my solution to the problem and how I think it should be prevented in the future.

    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

  • Analysis Of Rebecca Young's Decision To Buying A Condominium

    864 Words  | 2 Pages

    The decision of Young to rent the condominium will provide advantages in terms of security deposit and rental payments for previous months because she did not face a significant financial commitment to pay for it. If she wants to buy the condominium, large amount of down payment needed to be paid by her. Monthly sales broker fees, closing costs, condominium fees, deed-transfer taxes and property taxes should be taken into account in the cost of a condominium fees. The rental fee is more cheaper compared to the purchase of a condominium. Young also a very professional person in investment banking after completing her studies in master. Thus, if she expects to pay at a higher price in the future, this will change the ability to buy and ability to pay the mortgage nowadays. Young consider to rents because it gives her chances to make a distribution and expand its

    Read More

  • Trials of Being a Homeowner

    814 Words  | 2 Pages

    ... A home is a material object that exists within a concrete reality. It exists with its own qualities, a house built of materials that change and degrade over time. The costs of homeownership are harder to dismiss when one becomes disillusioned with the effects of a lack of attention to those costs. As someone with a passion for writing, my final project will be an extended expository essay about the history of homebuilding from ancient to modern times.

    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

  • The Homeless in Canada

    2623 Words  | 6 Pages

    In my experience as a real estate sales representative, I have looked at many rental properties that are owned by people that are commonly known as slum lords. These units are in disrepair with leaks, mold, mildew, holes in walls, ceiling and poor floor coverings. Many people are afraid of pushing these issues to have repairs done as they might lose their shelter or their rent could be increased. There are people living in a rooms in a house, that are also at risk as they don’t realize they are not protected under the tenant act so the owners can remove them from their shelter without notice. I have also experienced people living in abandoned commercial buildings ...

    Read More

  • Renting Versus Buying

    807 Words  | 2 Pages

    This article describes the disadvantages and advantages of buying or renting your home. It describes advantages of buying such as taxes and appreciation of the home. However, coming up with a down payment may be hard for many people. Renters may have less cost and more flexibility on when and where they can move to.

    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

  • Rent To Own Advantages And Disadvantages

    811 Words  | 2 Pages

    Renting-to-own is beneficial in many different ways. One of the most beneficial things about renting-to-own, is that a person can with bad credit has the chance to own a house. Renting-to-own is a good option for people that aren’t sure if they will be able to afford a house. Renting-to-own gives people a lot of leeway and is a wonderful choice for people to

    Read More

  • The Ethics of Rent Control

    905 Words  | 2 Pages

    The main problem rent control can create to landlords is the case of the tenant do not move out because of the good rental price. That causes the landlords to lose money by not being able to increase the rental price of their units. Besides, the price of maintenance continues to increase, causing landlords to not earn any profit with their ...

    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

  • Compare And Contrast Living Alone Vs Living With Others

    771 Words  | 2 Pages

    As I was always told, it is better to live on your own then it is with a roommate. These are reasons why.one. When you are living, alone you have the responsibility to take care of everything and not have to worry about other people getting in your way. Living on your own offers a great deal of freedom to act how you want and live the way you want. If you want to lie on the couch for days on end, watching there is no one there to complain about your behavior. You can listen to your music as loud as you can want or any kind of music for that matter because you do not have anyone nagging about what you are doing.

    Read More

More about The Advantages And Disadvantages Of Buying And Renting

Open Document