The Pros And Cons Of Renting Vs. Buying A House

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Purchasing a House
A house is not only an expense that is financed by long term debt, it is also an asset that stores value. Purchasing a house can be a daunting experience as it will be the biggest expenditure of one’s life and one needs to ensure nothing goes wrong during such a process. This paper covers two questions in relation to purchasing a house: pros and cons of renting versus buying a house and the role of title search while making a house purchase.
Pros and Cons of Renting versus Buying a House
Personal factors and choices affect the type of house someone chooses to live in. Personal tastes, stage of one’s life, family size and financial circumstances, health and career; all of these affect one’s decision in purchasing and financing
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While purchasing a house also makes someone take up a massive financial debt (mortgage), renting does not and so, when one is in their youth, they prefer to rent than to buy simply because buying a house is not affordable. Likewise, there would be fewer maintenance expenses of renting in comparison to buying. When one is young, they prefer to travel and move around with respect to their job and renting enables one to do so; buying a house at one place would mean one cannot travel much farther for a job. Renting would also enable one to reduce opportunity costs and keep their liquidity for other prospects, in contrast to purchasing. All of the advantages of renting are disadvantages of purchasing/owning a house in…show more content…
A lender may require one to perform title search in order to confirm that there are no liens or claims due on the property being sold by the seller. If there are previous property disputes, any unpaid tax or any other unpaid obligations due on that property, it cannot be resold. One can hire a lawyer or a title search company to check the municipal or town records of liens in name of a particular property. A title insurance can also be taken by the buyer to insure against any lien omissions in a title search (Riegal & Yacht, 2009, p. 177). A lender may do their own independent title search prior to giving you a mortgage and they may even require you to get a title
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