The Benefit of Renting Verses Home-Owning

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.

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

As you see there are definitely pros and cons when deciding if renting or buying is right for you. When you rent, you don’t have the responsibility of maintaining the home, you aren’t worried about improving the interior or exterior of the dwelling, you don’t have to pay taxes on the home, and you aren’t faced with the possibility of losing the capital put into the housing market, or the possibility of foreclosure if a mortgage payment is missed (Should you rent or own). But on the flip side, when owning a home the equity in the home can be converted into money if refinanced or sold. Over the years, if kept well, real estate property increases in value and therefore this asset will up in value the longer the property is held (Should you rent or own).

Some of the renting and owning advantages and disadvantages that need to be considered are; The financial obligation. When you rent you commonly have a one year lease, or less, so you are only financially obligated to pay the agreed upon rent for a year, after that you have the choice of signing another lease, or moving somewhere else. When you buy a home, you are obligated for 15, 20 or 30 years. You can sell a house if you need to move, but selling a house is rarely a quick

The American dream is to own your own home. For some this could be an impossible task to tackle. For others becoming a home owner is as easy as 123. Then there is the select few who prefer to rent over becoming a home owner. If you were to think of the differences between the two options, you might change your mind. Whether you prefer to be a home owner versus a renter, or vice versa, taking a look at the other option might change your mind. Many people would believe that owning your own home is incomparable to renting; ultimately that decision could be determined by an individual

The best choice, in my opinion, is owning their home. While renting has less upfront cost and fewer utilities to pay and no maintenance cost all the payments you make to the landlord will do nothing for them in the long run. The payments you make on a home go towards paying off the mortgage and gaining equity on the home. Once the mortgage is paid in full, there are no more payments owed vs. renting you will never stop paying monthly payments. The property is an investment and will grow in value over time. Instead of helping the landlord pay off their mortgage the money they would have paid for rent, they need to take that money and save for their house. I would rather have my kids stay home for a couple of extra years to save their money to buy a house because once they move into an apartment, it is much harder to save while paying monthly

Another great benefit of “rent-to-own” is that, this gives potential buyers an opportunity to get a home without having a great credit score. As stated before, many Americans were affected by the economic crisis that hit America years ago. This not only affected the sale of homes, this affected people’s financial stability. Thus, credit scores of many Americans were gravely affected. Many suffered bankruptcies, maxed out credit cards, failed businesses, etc. Fortunately, the “rent-to-own” option has made it possible for people to get a home even if they were affected. As a matter of fact, while you are in the process of renting a home, you can work on rebuilding your credit. This is what makes this benefit so great. However, this only applies to renters that are financially stable enough to go through this process. For example, if your rent, utilities, food, household

You might be better off paying a reasonable amount for rent and saving your money when buying seems more logical. Also, it depends on lifestyle preferences. Some people may not want to do all the work that comes along with owning a home. As of right now many people are leaning towards renting. This is because the market is going down. Some don’t want to commit to a mortgage if when they go to sell they can’t find any buyers.

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.

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

The recession was brutal and left many American homeowners with little financial flexibility making them default on their mortgages. I experienced the results of this firsthand because my parents were business owners that were hit hard by the recession of 2008 forcing them to file bankruptcy and foreclose on our five year old property. Currently ‘rent to own’ is the best option for the following reasons: it’s a win win situation for sellers and buyers and it gives buyers a trial period to see if they are financially fit to pay a monthly lease price similar to a mortgage. The monthly rent payments are actually investments towards the purchase of the house. With most agreements a percentage of the rent payment is funneled towards the down payment. These advantages far outweigh mortgaging a house for a recovering ‘boomerang buyer’ due to the fact it allows these people to rebuild their credit score as well as a no strings attached situation. The main benefits of going down the rent to own route is a secure purchase price that will not fluctuate once the lease expires, an opportunity to build credit and become eligible for a mortgage after the lease and finally the ability to ‘test drive’ the new house which would be impossible with a mortgage.

Another issue with renters is that the neighborhood home values starts to decline as more rental properties become readily available. Health issue wise their can be discrimination among certain races such as African American or Hispanics moving into certain areas. People who also rent are more likely to have less economic status then home owners in that area(Oleskewicz, C

Maybe to them it will be simply easier than to pay off what might be required to pay for the house. Or maybe the dreaded mortgage of which we've all heard of will come to wreak havoc on our day. Maybe they do not want to deal with the little things that come with a house. Like a lawn or a yard that must be continuously maintained. Or the everyday simple problems that can arise in the household that otherwise the landlord would fix. But no matter the pros and cons of the ownership of a

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.