...Why Renting in Today’s Economy is better than Buying a House Matt Harrell COM/156 November 7, 2010 Karen Campbell Why Renting in Today’s Economy is better than Buying a House Foreclosure crisis is at an all time high across most large metropolitan areas in the United States. Seattle- Tacoma- Bellevue metro area registered the sharpest annual increase, 71% or one in every 129 households received a foreclosure notice. California, Nevada, Florida, and Arizona remain the hotspots for foreclosure across the nation according to RealtyTrack Incorporated Rick Sharga a senior vice president at RealtyTrack quoted “The epidemic is spreading from the states at the ground zero of the foreclosure problems out into areas that had not been previously affected.” One of the latest signs that the foreclosure crisis is worsening across the nation is, high unemployment, slow job growth, and homeowners are uncertain about falling home prices. Concerning housing, he or she has options. He or she has an option to rent and an option to buy. Renting an apartment is a better option than buying a house both renting and buying has many advantages and disadvantages. By explaining these advantages and disadvantages, I will persuade him or her into renting over buying. While renting he or she can save money, instead of spending money. “A survey conducted by Harris Interactive for the National Apartment Association in May 2010 found that 76% of those surveyed now believe that renting is a better...
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...Running Head: Choices Buying Vs Renting House English 107-110B-30 Margaret Draper AIU Online ABSTRACT When deciding on buying a house can be confusing. But it if it is a better financial option to move for a family than renting which requires a consideration of cost and options that people often neglect to factor on. Buying Vs. Renting House House is probably the largest purchase that you will have to make in your lifetime, but whether or not, it is very important to make sure you decide which option is better for your family. And making the right decision. Many people prefer the flexibility of renting, and others want to the security of owning their own homes. That is why it is very important to know the advantages and disadvantages of buying versus renting. While deciding to rent or buy housing can be difficult making a decision. This paper will discuss the pros and the cons of each and will have some good research on the personal experience and individual assessment. I believe that buying a house is a much better option. The unemployment rates have increased and therefore there have been a lot of foreclosures on houses. It can be difficult deciding on buying houses. Renting- Advantages * More fixed costs for the term of the house. * Not giving equity but not losing it either * When the lease is up, you can just move. * There is generally less work on maintaining a home or improvement. * Smaller amount of...
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...The Advantages of Buying a House over Renting an Apartment Com/172 The Advantages of Buying a House over Renting an Apartment Buying a house for most is the American dream, but with today’s economy many people are unsure if the dream can be obtained. The main concern for most people would be the financial responsibility. Many people believe that the financial responsibility is overwhelming and they are just not ready. Although some people believe they are not financially ready to purchase a home, buying a house is a better option than renting an apartment for three main reasons. First, becoming a first time home buyer can be a very exciting experience that can have a positive long-term effect on some one’s life. Second, a home buyer can make any modifications or changes to a home. Third, and most important, you will eventually own your home. With those three examples, I will show the advantages of buying a house over renting an apartment. The first advantage to buying a home verses renting an apartment is that first time home buyers usually receive incentives or rewards for being first time home buyers. If the home buyer is purchasing a newly built home, usually the builder will give little incentives such as appliances in the home, a gift card to purchase new items for the home or even interior upgrades to the home. In recent years, there was a huge increase in the home buying market. This was the first time home buyers tax credit approved by the federal government...
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...Renting an apartment is a better option than buying a house Home buying is not for everyone in today’s economy renting versus buying depends on many factors such as how much up front money is available to you, how quickly buying or renting will rise, and how long you plan to live there. Inflation has made buying a home more difficult because the credit standards are much higher consequently these circumstances has made renting a better option than buying for the ones that are on their own for the first time, buying a home is a future dream and because there are many cost associated with home purchase, we have to consider which is more beneficial to your bottom line. Weigh the facts with a caveat that something’s are not as great as they sound, and weigh the options so that there are no surprises when that moment comes. Some might see renting as throwing your money away, but realistically speaking, if your credit is near perfect then the best choice for anyone who is not credit worthy, is to rent an apartment. There are a lot of reasons that shows that it might be a better option, but this shows that you have to be effective. Another point to remember is how long the buyer has to save up for the down payment so that they are limited to other investing that could be making large profits. Renting is much easier because you don’t have to all the up front cost or have the best credit, and if you are looking to stay between five to six years then the better option is renting...
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...Associate Level Material Appendix D Research Plan As part of your research plan, you must first draft a research question for your research paper that will guide the rest of your writing. A research question, which is more specific and focused than a general topic, is the question that your research paper will be answering. For example, if your general area of interest is social security, a possible research question might ask, “How can low-income families save more money if the United States had a reformed social security plan that includes personal retirement accounts?” As you develop a research question, keep in mind that you will need to research sources to support your topic. Do not pick a one-sided question that will limit your research. Instead, develop a research question that lends itself to further exploration and debate—a question you genuinely want to know the answer to. Try to pick a research question that is neither too broad (covering too much) or too narrow (covering too little). It should be broad enough to be discussed in a short research paper. Part 1: Complete the Research Plan |What is your general topic or area of interest? | | | |Renting a house vs. Buying a house | | | ...
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...Renting Vs. Homeownership Jasmyn Gould ECPI University Online Thesis: Most people would either like to rent or become a homeowner, but there are several factors that need to be address before making the decision; these reasons include financial status, lifestyle, tax deductions, privacy, commitment, savings, utility cost, and a whole lot of research. Today’s housing market is on the rise, so this is the time to jump in or is it? You are probably asking, what advantages do I have if I purchase a home or rent? What would be better for me financially? It is important to know some facts of renting vs. homeownership before making such an important decision. Homeownership is not for everyone. I believe it’s up to the individual if they want to rent or buy. In some cases people are just better off renting. Before buying a home, it’s important to consider how that purchase will affect your finances and your lifestyle. Homes typically increase in value by allowing you to build equity in it, which will offer an investment for the future. Every time a mortgage payment is made, it is applied to your balance which reduces the loan that was taken out. Your monthly costs are usually more predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Which means, the monthly amount of your mortgage will not increase for the duration of the loan. An article from TurboTax said (2013), “You know that you can get an income tax deduction on the mortgage...
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...in my final paper is, renting an apartment or house is better than buying. My point of view on this topic is just that, in today’s economy renting is much better than buying a house. Every day you here of more and more families losing their homes either due to rising interest rates or a lay off and they just can no longer afford to make their payments therefore they end up losing their home. In these tough economic times, why would anyone want to risk something as big as their family’s home? Although renting may not lead to home ownership, it is much less of a risk than jumping into something that you are simply not ready for. On top of the lesser risk value, renting can at the end of the day be quite a bit cheaper. For instance when you rent, if something goes wrong in the apartment/house the only thing you have to do is call your landlord and they will either come and fix it or call someone out to fix the problem which ultimately will save you hundreds if not thousands of dollars. Paragraph two: When writing my point of view on “Renting an apartment is a better option than buying a house” I plan to let the reader see my point of view on the situation. I think that persuading the reader with my argument, renting is the better option, will be rather simple because I am very passionate about this. I think that possessing an emotional investment will help me to be able to show my point and grab the reader’s attention. Currently, renting a home allows you to have much more independence...
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...is still better to buy a home then rent. I. Why pay rent and make the landlord richer when you can own your own home for basically the same monthly payment and reap the tax benefits yourself. II. In 2006 I was faced with having to make the decision to buy or rent. After researching found I could buy a 4 bedroom house in a good area for same price of renting a 2 bedroom apartment. Also working for the government I knew the tax advantages I would get so I don’t have to tell you which decision I went with. III. Today I am going to show you that buying a house is a better choice then renting even in this unstable economy. IV. There are many programs that help people purchase a home. First time homebuyers even with bad credit can qualify. Do you know where to look? I will provide you with some internet sights that can be of assistance. V. There are many reasons why home buying is better than renting; the few that I will talk about are 1. Long term buying costs less on a yearly basis then renting. 2. Good financial investment and low interest rates and 3. Tax advantages Now that we are coming to a close on the semester some of you are going to be faced with the decision upon graduation as to whether you should buy or rent. I. If you have already decided that you will be staying in a certain area for at least 7 years it is shown that buying is cheaper than renting. a. On April 21st. 2010 the NY Times reported that if you remain in...
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...Erin Goff Managerial Economics BUS 640 Should you Buy or Rent a House? Instructor Bolden 06/04/2012 Abstract One of the biggest decisions people will make is if they should buy or rent a home. There are many advantages and disadvantages in each decision. Explicit costs are easily seen by consumers. Implicit costs and opportunity costs are not always recognized and often looked over when making decisions. I wanted to see the costs in terms of both of these. I am focusing on the costs of each in order to get the total economic cost in the end. The economic cost is able to give me a value for both renting and buying over 30 years. My analysis has led me to the conclusion that buying over the long term is going to be the best choice. When you decide that is it time to move to a new home, is it better to rent or purchase? I will talk about this topic in detail in the following paper. I am currently facing this decision myself, along with many other Americans every day. I am currently renting, with the current economy and low interest rates I am looking at buying a home. I wanted to look at the costs of renting verses buying so that I can see the factors and costs involved in the decision making. Whether to buy or rent is a question that most people face in their life. This is a big decision for many people and involves many factors. It relies on where people are in life and where they want to be, however it also does have economic impacts as well. Being that it is one of the...
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...1. Topic: Renting an apartment is a better option than buying a house. Renting-vs.-Buying In my opinion I think that buying a house shows home ownership and an excellent path to building wealth. My thought is that if you rent you’re throwing away money. Owning your own home is a forced savings plan. We have always heard statements like these plenty of times. On television, radio, the internet, and in casual conversation. Such sentiments are common in any discussion that involves home-buying and personal finances. Let’s take a look at some of the financial differences between renting and home-buying. Now for the purpose of comparing renting to owning in this essay, I’ll be using real-world data gathered from my Orlando area (West Orlando). Although most first-time buyers tend to move from renting an apartment to buying a larger, stand-alone house, as much as I can I will compare apples to apples. • For rent, I located a 3-bed, 2.5-bath, 1,840 sift house with an attached 2-car garage, on 0.2 acres. Monthly price: $1,495. • For purchase I found a 3-bed, 2.5-bath, 1,850 sqft house with an attached 2-car garage, on 0.22 acres. Price: $424,950. The two homes are located within two miles of each other in similar neighborhoods, and neither is located on a busy road. We’ll assume that our hypothetical homebuyer is a married couple with $85,000 in the bank to make a 20% down payment. To calculate mortgage payments we will use a recent 30-year fixed interest rate of 6.25%. Let’s...
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...largest acquirement people will always make in their life is buying of a home. It is to this date considered as the ‘American dream’ up to this date. The income tax code too provides advantages to home ownership. The considerations for renting an apartment are the same to those of buying a house. Majority of people consider owning a house to be worthwhile the model, age and design of the house notwithstanding. The option to either buy a house or to rent an apartment depends on personal preferences. Unlike when buying a vehicle, buying a car takes a long process (p.129). (Bevan 2008. p.53) explains that home owner take added care to their homes than renters, they remain in their homes longer than those who have rented homes. He reports that research shows home owners to report a high self-esteem than renters. Other than psychological comfort owning a home can be an option of tapping into house equity when emergencies arise. All the advantages of ownership can be lost once the owner gets difficulty meeting mortgage payments. Bevan (2008) further indicates that sometimes it may last for an over a decade to own a home. He indicates that it is good to understand that once current position when planning to transact a home or rent an apartment. It is worthwhile to seek the advice of a mortgage broker or to a financial institution and get an approval for a mortgage. The question on renting an apartment or buying a home is probably one of the biggest decisions a person has to...
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...Compare/Contrast Homeownership to Renting An individual in the market for a new home would benefit more from buying versus renting. With the current economic situation, there has not been a better time to buy; however, this requires an individual to have steady employment and financial stability. I will show the benefits and drawbacks of both buying and renting through comparing and contrasting four different areas: expenses, maintenance, flexibility and family. There are different financial needs for both homeownership and renting an apartment. For example, a three bedroom home in Lakeville Minnesota is selling for $255,000. The mortgage payment on this amount with taxes and insurance would be $1500 per month based on an interest rate of four percent. Closing costs and a down payment would be necessary for the purchase of this home. To purchase this home you would need to qualify for a bank loan with steady employment and an annual salary of $55,000. A three bedroom rental in Lakeville Minnesota is priced between $1199 and $1289 per month. An employment history report and a down payment of $1000 would be required to rent this apartment. It is going to require more finances in the beginning to buy a home than to rent an apartment. There is a difference in expenses between owning a home and renting an apartment. In the Lakeville home the utilities would be estimated to cost between $450 and $500 per month. In the Lakeville apartment, the utilities were included...
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...Student Name | | Course and Section Number | Program of Study | FIN 1103 | | Finance FIN 1103 Week 7 Individual Work Deciding to Buy a Car and Renting Versus Buying a Home Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week7.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 7: Individual Work basket in the Dropbox. | Objective: Compare financial alternatives for major purchases Locate the Financial Planning Case on page 243 of your textbook and complete Case 1. Locate the Do the Math on page 280 of your textbook and complete number 3. Financial Planning Case 1: The Johnsons Decide to Buy a Car | After three years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry and Belinda estimate that they could afford to spend about $10,000 on a good used car by making a down payment of $2,000 and...
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...OWNING -VS- RENTING Principles of Macroeconomics Professor John Weber October 17, 2013 Low mortgage rates and rising apartment rentals all over the country has led some people to dive into homeownership more quickly than originally planned. There are many that are still waiting for the housing market to recover, even with incentives to buy. All rely on the personal financial situation in making this decision. Renting vs. Owning both presents a number of pros and cons: Renting: Pros Cons Flexibilty and free Can’t build equity Terms of lease Restrictions No maintenance and upkeep Approval by owner to paint or remodel Ownership: Pros Cons Build Equity Pay for Maintenance Tax Breaks Illiquid Asset Stability of Mortgage Property Taxes Investment Lose of Value Location Use of your savings for down payment Remodeling as you please Owners insurance is Mandatory However purchasing property can be for many reasons, such as, an investment for flipping, to fix up and resale or to occupy. Maintenance of up keep, roof, windows, snow removal, and credit score is all things to consider for purchasing a home. When purchasing there are many different options row home, single, development all are investments. There are many financial parts that play into the option of purchasing and renting. When buying you must be very aware of purchase costs which are the down payment and closing costs. Yearly...
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...1. Will you buy a house and lot today or pay in installment of simply rent? Use time value of money. Should I Buy a Home or Just Keep Renting? Kristin Wong Should I Buy a Home or Just Keep Renting? Dear Two Cents, I’m out of debt, and I’m now saving for a down payment on a home. It’s always been my dream to be a homeowner. But lately, I read a lot of arguments against it in favor of renting. How do I know if it’s a good idea for me? Should I buy or keep renting? Sincerely, Hopeful Homeowner Dear HH, For a long time, conventional wisdom seemed to be that you grow up and buy a home because that’s just what you do. But lately, people are realizing that it isn’t always the smartest financial move. Obviously, the housing crisis has a lot to do with that—it’s made people question the standard assumption that homeownership equals financial stability. Five Things I Wish I Had Known Before I Bought a House Homeownership isn’t a good or bad idea on its own. It has everything to do with your own situation. Sometimes, buying a home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Here’s what you should keep in mind. Don’t Think of a Home as Your Main Investment Should I Buy a Home or Just Keep Renting? The biggest argument for owning a home is that it’s an “investment.” But a lot of people overestimate the return on this investment. People tend to believe that homes are appreciating assets,...
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