Renting vs Buying

857 WordsFeb 25, 20134 Pages
Compare/Contrast Essay: Renting versus Buying Renting a home allows renters to pay someone to live in their home for a period of time. Buying a home allows homeowners to pay someone to gain ownership of their own home. There are pros and cons to both renting and buying. It is a great idea to weight the advantages and disadvantages of both. This process will help to determine whether renting or buying will best fit their needs. In some ways renting and buying could be compared. Potential renters or buyers are able to choose the neighborhood they wish to live in. Some prefer to become longtime renters and are able to live in a neighborhood for long periods of time. Homeowners purchase homes within a community with the…show more content…
When choosing a fixed rate mortgage, their payments will remain the same for the duration of the loan. This allows them to have a peace of mind. On the other hand, renters will not have a fixed rent amount. Their rental fee can increase at any time and sometimes without notice. Landlords raise their rental fees for many different reasons. Upgrading appliances, making renovations, or obtaining a new landlord can play a role in rental increase. As a renter, one can avoid owning a depreciating asset. This is another pro for those who choose to rent. There is no guarantee that a home’s value will increase over time. In fact, Homes have a propensity to lose its worth with time. Therefore, it is necessary to undergo renovations in order to increase a home’s value. There are many advantages and disadvantages to take into consideration when deciding to rent or purchase a home. When making this decision there are questions that one will need to ask themselves. For instance, ‘What are the costs of buying versus renting?’, ‘How long do you plan to stay?’, and ‘Am I able to finance a home?’ Take these questions into deliberation. Once these questions are answered, one will be able to establish if they are a renter or
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