Buying a House Is Better Than Renting an Apartment.

1059 WordsMar 29, 20115 Pages
“Buying a house is a better option than renting an apartment.” In this essay I will discuss about the major benefits of buying a house rather than renting an apartments. While it can be costly it is a safer place to live that has long term-investment and tax advantage. Buying a house may be difficult and it can be a confusing process, even for veteran buyers. Here are some tasks that housing experts say before getting into the buying a house. Get financials in order. Buyers should check their credit score, taxes, 401(k) s and other aspects of their financial situation to determine the maximum amount they are comfortable affording for their monthly mortgage, utilities, maintenance, taxes and insurance. If one’s credit score is low, he or…show more content…
It is typically better to buy the least expensive house in an upscale neighborhood and make improvements. In such a case, your home will appreciate more in value. Although the average change in house prices are related to changes in fundamentals or perhaps market-wide bubbles, not all houses in a market appreciate at the same rate. Apartments only increase in rent as the years go by. Renters will never own a piece of the apartment or cash out any money they put in, unlike in paying the “mortgage.” If the owner continues paying the mortgage, in 15, 20 or 30 years (depending on the length of the loan) the house is theirs. Homeowner can deduct on their federal and state income taxes the amount of mortgage interest and real estate taxes they pay each year. For example, by itemizing deductions on the tax return, a married couple filing jointly can deduct $21,000 from his taxable income. A renting married couple may not have a lot of deductions, so they might choose the standard deduction, which is $10,300. Home receives an additional $10,700 in tax deduction than the renting couple. Assuming both couples each earn $100,000 per year. The renting couple would have to pay income tax on $89,700. The owning couple would pay tax on $79,000 difference of $10,000 owners can put in their pocket. Everyone wants to cut back on what they pay in taxes and home ownership not only decreases taxes, but builds equity.
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