RENT VS BUYING

Rent Vs Buying

Rent Vs Buying

Introduction

If you are looking for a new home, your first decision will be if you plan to rent or are ready to buy. Like many people, owning a home can be one of their highest aspirations. First is the emotional satisfaction of owning a home and then there are financial benefits. But buying is a big commitment. It is important to make sure a person is ready for it (Frew, 2002).

Thesis Statement

Buying a home is better than renting when the rate of growth of house prices is greater than the yield.

Advantages of renting

When a person rent, he generally have to make an advance payment of one or two months' rent as security deposit. This amount will be much less than 10% or 20% of the value of a home that is normally required to have cash for the down payment.

People agree to lease one or two years. If they want to move at the end of the lease, all they have to do is notify the landlord. They do not have to find another buyer.

The landlord is responsible for repairs and maintenance without additional cost to the person, and sometimes heating bills and utilities are included in the rent

Advantages of Buying

With each monthly payment, person increase its percentage of ownership in your home. This is called accumulate equity. Equity is the difference between what it is housing and the amount person owe on the mortgage.

If the property value generally increases, your home will have greater value. This increases their net worth. If the person moves, you can sell and make profits.

Generally a person can deduct mortgage interest and property taxes to the filing of income tax, which can mean significant savings.

If you need a loan you can borrow using the equity that has ...