Renting vs Buying

Some people might think that renting and owning are pretty similar, but they do have a lot of differences that people tend not to think about. In fact most people don’t do a lot of research on the differences and similarities. Renting a place to live is a wiser choice and is cheaper in the long run, but having a place that you own has a lot of advantages to. Some differences that people don’t think about are maintenance, utilities, and restrictions.

Apartments are a better choice than houses because they don’t require as much work and commitment. It truly does depend on your preference. If you have a larger family, an apartment may not be the best choice. People sometimes spend months making the choice for their living situation because you don’t want to be unhappy since you may live there for over two years. The process can be dreading and tiring but in the end it will be worth it.

In the early years of a mortgage, the majority of the monthly mortgage payment goes to paying the interest. Over time an increasing amount goes to reducing the principal. As the principal is reduced, the equity will increase on the owners home. Owners Gain tax advantages by deducting mortgage interest and property taxes from their federal income tax form. They should Stabilize their payments with a fixed interest rate on their home loan. They should Have a secure place for their family to live. A home provides a permanent place where a family can live and grow, and the owners can decorate or expand a house the way they would like to create their dream home. There is always a negative compared to a positive. A home could lose value. There is no guarantee that a home will increase in value. It could decrease in value especially in a rocky housing market. Another benefit renters have over homeowners is that they do not have to pay property taxes. This can be a

Full time student and soon to be graduate, Kyle David Bellini, has many opinions regarding the renting versus buying a home debate. As he is studying real estate at the graduate level, his education has given him more insight into the matter than most. There are definite pros and cons

When you own your home, you have the luxury of not answering to a landlord, and the ability of decorating the inside and surrounding property as pleasing to you. But as a renter you have the flexibility to move when desired instead of staying stationary in a purchased home.

Even though you may be building equity in your home, that money is tied up in your home for many years. When you rent, you aren’t building any equity at all. So you really have to think about what you want, and when you want it.

Typically when renting an apartment or house, there is much less responsibility. Depending on whether or not the place is furnished, you could possibility not have to furnish your place. Usually though the appliances are included when renting an apartment, but typically not a house. A renter is not responsible for making any repairs to the home, or the property. Another thing that is not included when renting is the property taxes or house insurance [ (McCay & Hawks, 2002.) ] A renter though must have Renter 's Insurance to cover any damages that are made to the renter 's own property [ (McCay & Hawks, 2002.) ] These two things could be very costly to a home owner. Of course you are responsible for renter 's insurance, but it is usually cheaper than home owner 's insurance. When you are home owner the amount of responsibility could be overwhelming for some people. Especially if you are a first time home owner, and have been renting since you moved out of Mom and Dad 's place.

When paying the commission of a realtor is no longer an issue, the seller is more likely to pass along the savings to the buyer and lowers the price of a home even more. Once both parties agree on a “rent-to-own” payment option, the potential monetary saving that is available to the buyer develops into realistic saving and also the development of investment.

Renting does have a cheaper startup cost. Landlords want their renters to pay a security deposit which is the first and last months’ rent. Landlords charge a security deposit to cover any cost for repairs and cleaning if the renter damages the home once they move out. Buying a home does require a down payment which can be anywhere from 3% to 20% of the house price. The down payment will depend on what

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.

Renting is typically less expensive overall than owning a home. First, it does not require a substantial down payment, though it often requires a security deposit equal to 1-3 month's rent. Also, renters are not responsible for property taxes and repairs on the home, as homeowners are. Monthly rent is often cheaper than monthly mortgage payment, depending on the home and the property being rented.

In today’s world, customers often face a dilemma about whether to buy or lease. Lease is an agreement in which one party gains a long term rental agreement, and the other party receives a form of secured long term debt. On the other hand, buying involves transfer of ownership from seller to buyer. Buying or leasing decision depends mostly on customer’s preference. There are many factors to consider before taking a buying or leasing decision.

Some individuals may believe that buying a home is part of the American dream and that renting an apartment does not compare, yet satisfied renters would disagree. Even though owning a home provides a sense of security while allowing modifications without permission, renting is preferred more often over buying because the expense of updating, monthly payments combined with utilities, and paying insurance on a home comes with a high price tag. A homeowner does have several luxuries such as forming lasting friendships with their neighbors, making landscaping changes to their yard, painting and designing their home. While that remains true, renting an apartment comes with several different options and

Attention Getter: Should I buy a home or just keep renting? This is the most important question prospective home owners consider before buying a house because owning a home isn’t for everyone.

Buying a house provides stability forever unless the owner decides to sell or to move into another home in which the owner gains equity for selling. This is still a huge benefit. Owning a home is a very huge security measure. When a person is an actual homeowner and not a renter he or she can control who actually enters his or her home (Map, 2011). It is easier to purchase home alarm systems and everything that goes on in a person’s home is controlled by the owner. As a homeowner the option of what is allowed and what goes on is controlled by the actual homeowner. If an issue comes up and the owner has to move somewhere else then this is a huge benefit. As a seller a person can earn so much money and it can build equity (Media, 2010). Usually homes sell for way more than the purchase prices, especially if the owner has customized the home, in which was discussed earlier (RP Reality, 2011). The selling price could be a huge benefit to any owner who is selling their home and moving. These benefits cannot be earned by an apartment renter.