...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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...Buying or Renting: Which is better for you? Your Name Com/156 Current Date Your Instructor Buying or Renting: Which is better for you? Introduction Many times we are faced with the challenge of choosing between buying a home and renting one. There are various advantages and disadvantages related to each of these options that an individual has. It is the dream of each individual to own a home in a good environment which is secure and peaceful. There are two options that one can choose from when considering a home. One can either rent or buy. It is important to carry out a thorough investigation on each of the options and make an informed decision. The decision of buying or renting any asset is crucial and should be critically analyzed. Therefore, it is important for one to take into account the benefits and costs involved in each option before deciding on the one to take. One might choose to use a buy vs rent comparison tool such as the mortgage calculator that can be provided by a lender or real estate broker. The Rent versus Buy Comparator allows the user to compare their estimated financial position after 7 years of renting with their estimated financial position after 7 years of home loan repayments (Realtor.com, n.d.). This tool will allow the buyer or renter to compare the possible financial cost and assists in making the decision whether to buy or rent. Moreover, most finance calculators will take into consideration the rent, rent insurance, expect...
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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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...March 9, 2016 Comparing renting vs. homeownership Some things to consider when making the choice between renting an apartment and purchasing a house. When renting an apartment some good things to consider are all maintenance work and grounds keeping is done by the landlord. Homeowners need to handle and pay for all of the maintenance work that is done to their home. If maintenance work is needed to the homeowner’s house and the homeowner doesn’t know how to fix it on their own then they may need to hire someone else to do the work that needs to be done, which can be very costly sometimes. Mostly all bills related to renting and owning a home are the same; such as the electric bill, heating costs, possibly a water bill and so on. There are some exceptions though, like insurance premiums and how much the rent payment is versus how much the mortgage payment is. Renter’s insurance in most cases is cheaper than homeowner’s insurance. Where does the Renter’s rent payments go? When people pay rent each month the payment can go for different things; whether that be for the apartment the Renter is occupying or another apartment within the apartment complex. Homeowner’s payments go to the bank financing their home. The payments for a home are usually split in different wayx; such as some of the payment each month goes towards the principle of the loan and another portion goes to the interest that comes along with financing through a bank. When renting the payments are normally...
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...Buying Versus Renting Ashley Mawhorter 1/11/2011 Axia College of University of Phoenix Every American has dreamed of owning their own dream home, whether they are young or old. Still many Americans choose to rent apartments. Why is this? There are many more pros when individuals decide to buy a home. That is why buying a home is a better option than renting an apartment. Jumping right into the first home one sees is also not the proper way to buy a home. Much time and research needs to be done and many things taken into consideration before deciding the best decision. Do I want to have a landlord, or be the landlord? How much can I afford if I choose to buy a home? Where do I want to be located and what style home am I looking for? Are there any pros and cons to buying verse renting? How much would property taxes be yearly? These are all important questions to take into consideration, and that will be covered in paragraphs to come. First and most important is figuring out how much each individual can afford. On ginniemae.gov there are two calculators that can help to determine individual financial status. The first calculator helps individuals to determine the advantages and considerations of owning verse renting a home (http://www.ginniemae.gov). Using the calculator I have come up with an example. If I were renting a home that cost 800 dollars a month and I wanted to buy a house I found for 100,000 I would simply calculate the percentage of down payment, length of...
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...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 upfront cash. Renting-Disadvantages ...
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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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...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 your home for 7 or more years you will save approximately $759/year over renting. b. Did you know you could also use the rent ratio to help determine what areas are better to buy in? To determine rent ratio you look...
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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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...Renting an Apartment versus Buying a Home Composition II / 156 March.20, 2011 Outline for my Essay Why should we buy a home vs. rent an apartment? There are a lot of factors to consider for both. There are a lot of steps to finding out what you would want if you buy a home and if you rent an apartment. The factors can be overwhelming and yet very important. So the first thing you need to do is get all of the information that you are looking for and put it down on paper. Then you need to weigh the pros and cons of them. Just to make sure you understand what it is you have gain and give up for each type of dwelling and how you want to own it. You also want to look at the financial part of it as well. Make sure you can afford what you are looking for or look for what you can afford. In the end you will be able to logically decide on what to do with your dilemma. So there are many factors however there are also the benefits and what you want to be responsible for and not be responsible for. So the choice is up to you and only you can make it happen. I am just giving you the information to make an educated decision. I rented for years before my husband and I decided to buy a home. It came years after and when our daughters were elementary age. I enjoy being a homeowner however I also enjoyed renting cause of not having to worry about doing all the stuff the apartment complex had to do because I paid rent. This is just a scratch on the surface of the renting...
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...Real Estate Foreclosures » Why a Lot of People Prefer to Rent Than to Buy a House Why a Lot of People Prefer to Rent Than to Buy a House Posted on July 12, 2010 Filed Under Foreclosures | Leave a Comment People prefer to rent than to buy a house. The number of people that are very much concern about owning a home hasn’t doubled up until now, this is primarily because so many people are suffering from financial hardships. A lot of real estate owner these days will tell you that it isn’t the right time to buy a house because a lot of people are suffering foreclosure trauma. This is also the same reason why there are people who prefer to rent a house than to buy one too. In so many instances, it will be best if you will know some good advices because there are so many situations that just don’t go coherent lately because of the financial crisis going on. It is best for you to know some of the most reliable reasons why a lot of people prefer to rent than to buy a house. Here are some of them: Interest rate –a lot of people know that they cannot pay for the houses they will acquire primarily because their credit standing won’t allow them to do that too. Having a secured loan is also a decent thing to do these days. A lot of times, your mortgage broker cannot give you the right type of package you need because they are not available. In this case, you need to delay the purchases you will make to be able to make sure that your money will be worthy. Remember that...
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...course and how they affect my ability to buy a house. The first principle I thought about was how much I could afford to pay for a house. This was the major factor affecting my decision. My income right now is very limited so at this time I do not have the means to save toward a down payment. Without a guarantee that my financial situation will increase, it is not wise for me to make a commitment like this at this time. I need to finish my education and find a more secure, better paying job first. I also considered other economic related factors when I made this decision. I thought about the type of neighborhood that I would want to live in, the additional financial responsibilities of owning a home, the total monthly and yearly cost of homeownership, the risks that come with owning rather than renting, my lifestyle and spending habits and my current savings account (O'Brien, 2005). A growing family should decide on what type of neighborhood they want to live in. I would want my family grow up in a good neighborhood with good schools. In most cases this is what most people want but often they make the decision in a hurry and be forced to live in a declining neighborhood with subpar schools....
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...The Hanlons discovered that the process of searching for a home can be confusing and daunting all at once. They have many housing options to choose from and a plethora of financing options, so which direction will work best for them? Should they continue renting their current apartment or take the leap that many of their friends have and purchase a house? Let’s look at the process the Hanlons may have experienced in their search to find their ‘American Dream’: The Search Process Since the Hanlons were a newly married couple with many peers in their same scenario, buying a house seemed the reasonable next step before starting a family. This scenario illustrates that one of the largest factors when searching for a home is both psychological and emotional. As stated in the case, Mrs. Hanlon was more trigger happy and determined, while her husband was more willing to be patient and look at all of their possible options. Given that their current location was exceptionally close to both their workplaces and shops, as well as had top-notch accommodations, their biggest reason for wanting to buy a home came from outside influence, namely friends who had recently purchased homes. Mrs. Hanlon began this process the way most people go about it- an online search. There were so many housing options that, despite the wealth of online resources, a direction can be easy to find or seem impossible. Information from friends was another resource that the Hanlons utilized in order to help guide...
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...1. The Linton family faces a very common decision. Their landlord has raised their monthly rent substantially and they must make a decision about whether to stay or leave given the increase. They have narrowed the decision to two options – stay in the current home and accept the increased rent or buy the home next door. Rent If they choose to rent, they are incurring a substantial rent increase over 5 years that is essentially a sunk cost. Mr. Linton is a resident so we can assume that his paycheck is modest and that Mrs. Linton would bare the majority of the rent increase. On the other hand, continuing to rent would eliminates the time, cost, upfront investment and risk of considering a home purchase. The landowner has also promised that this will be the only large rent increase. Exhibit one also indicates steady rent prices and modest increases. Since the Lintons plan to move in the medium term, a home purchase is just one more thing they would have to manage and settle at the end of the 5 years. If the Lintons are risk averse, have limited time, and need a large nest egg for other uses, continuing to rent would avoid those potential issues. Buy In considering a purchase, the Lintons are accepting increased risk, upfront cost, and time. Their risk is that their investment will not reap rewards at the end of the 5 years. The market is not expected to appreciate substantially in the next 5 years so the Lintons must consider if their investment is worth the risk of the...
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...taxes in everyday decisions will help people make informed decisions about the value of studying taxation or pursuing a career. Once you know how taxes effect your money, you can better plan for future expenses, gifts, or investments. 2. What are some aspect of business that require knowledge of taxation? What are some aspects of personal finance that require knowledge of taxation? Taxes are significant costs that influence many basic business, investment, and personal decision. Business decisions: what organization form to take , where to locate, how to compensate employees, appropriate debt mix, owning vs. renting equipment and property, how to distribute profits, and so forth. Investment decisions: alternative methods for saving for education or retirement, and so forth. Personal finance decisions: evaluation job offers, gift or estate planning , owning vs. renting home, and so forth. 3. Describe some ways in which taxes affect the political process in the United States. 4. Courtney recently received a speeding ticket on her way to the university. Her fine was $200. Is this considered a tax? Why or why not? 5. Marlon and Latoya recently started building a house. They has to pay $300 to the county government for a building permit. Is the $300 payment a tax? Why or why not? 6. The city of Birmingham recently enacted a 1 percent surcharge on hotel rooms that will help pay for the city’s new stadium. Is this a tax? Why or why not? 7. As...
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