RENTING AN APARTMENT IS A BETTER OPTION THAN BUYING A HOUSE

Anthony Zambardino
Axia Student
COM/156
November, 2010

I. Introduction
II. Renting
A. Cost to Rent
B. Responsibilities

III. Cost of Homes A. Saving Money for a Down Payment B. Process of Getting a Loan

IV. Taxes A. Maintenance Fees

B. Property Taxes

Introduction

First of all, consider what we have learned in recent years about the economy. Even though it may seem that things are looking up, consider how many people have lost their homes, or are being foreclosed upon right now whether it is because of losing a job, investing in the wrong company, or using some kind of lending service that went under after paying all that money into it. How truly secure are you in your job, and what happens if after you have started paying on a house and you do get fired or laid off? How are you going to keep coming up with the mortgage payments?
There are many different reasons why renting an apartment right now is much better than buying a house. For one thing, it is cheaper to rent an apartment in the long run. If you are renting an apartment for $700 a month for a three bedroom, that same home is going to cost you anywhere from $1,000 to $1,500 a month in mortgage, factoring in insurance and taxes. If you really want to invest in something, take the different between this rent and a mortgage payment and invest it in the stock market.
Getting a loan for a house is a long and drawn out process. You have to have excellent credit, a large down payment in order to get a good interest rate, and jump through a bunch of hoops. If you do finally get into a home, then you are locked into owing someone a lot of money, and have to continue paying that for years to come. With renting, as long as you pay your rent, you have nothing to worry about, and when the lease comes up, you have