Buying vs Renting Essay
996 Words4 Pages
Buying vs Renting The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership.
“When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from federal income taxes, and usually from your state taxes” (Home Buyers Guide, p4). Buying a home can be alarming, if you are not prepared, whether for the first time or even for the fifth time. If you take time before going into the process to gain the knowledge needed, one might see that…show more content…
But on the other side, if you are renting, unless you damage the property, you don’t have to pay for fixing repairs.
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. 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). Timberwoods Townhomes has recently converted from a co-op into a first time home buyers community. “A housing cooperative is a form of home ownership in which people join to form a cooperative corporation which owns the building in which they live” (Cooperative Housing,
Everyone of us has been dreaming of his own house. Sometimes our dreams come true, but some people believe that living in a rented apartment is better than owning a house. I think that the advantages of your personal house are much bigger than of a rented apartment and even financially it will be better if there were not so many extra fees and other payments that are coming to you with every passing year.
The unquestionable advantage is that you are not paying money to the unknown person and they will never be back (in the form of a flat or a house). Still many people do not agree with this statement and say that “throwing money away” is too rough and does not correspond to the whole situation and extra expenses do not bring much pleasure: People explain that paying rent is throwing money away. Of course, they don’t mean that literally. You’re getting something for that money (a place to live). But with a mortgage you’re building equity, right? Doesn’t that fundamentally make more sense than renting? No. “Building equity” just means turning some of your money into a house. That’s one of many ways you could invest your money.”
Unfortunately the majority of young people held this position finding out that renting is much easier than buying a house.
But when you are the owner you do not depend on any circumstances as you are depending living in apartment.
Being an owner you may choose what kind of house do you what, what color of walls, which furniture and so on, living on the rented apartment you have to choose from the variants you are suggested and sometimes circumstances turn in such a way that you need just to live somewhere and there is no question about choosing you get just what is suggested. Sometimes the owners of the flat put you behind the fact that you ought to leave the apartment earlier than the contract is finished, because of… it can be everything, the reasons are numerous, the fact is that in your own house you will never meet to such a problem as you are dependent only from your own circumstances but not from the other’s people.
Another advantage is connected with pets. If you have a cat or a dog it will be more difficult to find apartment where the owners would not be against your pet. In your personal house you can become also the owner of even crocodile or some other exotic pets.
|Tax write-off||No tax write-off|
|You can upgrade your home as you see fit||Need permission to make any changes|
|Build equity in your home as value appreciates||Your money goes toward the landlords equity|
|Control of loan payment options||Rent can increase periodically|
|Pride of homeownership||You have no ownership|
I think that it is one of the most reasonable things that you feel safe and protected in your house. My home is my castle.