RENTING & BUYING

Renting is better than Buying

Renting Is Better Than Buying

Introduction

There has been a quick increase in the demand of offering services of non-ownership form of consumption that is rental particularly with regard to the general consumer goods. According to Berry and Maricle (1973), for utilitarian reasons in 1970s confidential and industry consumers mostly rented goods. However, recently customers look for more experience in consuming a product as they have become more cultured, more stylish, more civilized, more daring, and sharp (Silverstein and Fiske, 2005). As a result, an increasing amount of existing customers prefer to rent or lease commodities (Watson, 2006). Renting is something for which you pay for the use of something this can be an apartment, house, car and tangible thing; whereas, buying is a concern it is an exchange for money with certain property or belonging. Renting anything is much more flexible than buying. It is a better option for people who need to change place often for their job or cannot afford the cost of house-ownership. However, it is general that buying anything is a better financial move than renting. The renter saves the money which is the difference between the potential mortgage repayments that are principal and interest and the rental cost.

Discussion

This is almost never ending, and resolves argument whether to rent or buy keeping the financial investigation aside (John, 1968). Looking at the situation of the world financial crisis prices of every product is increasing day by day. It is inflexible to visualize a world where rents and prices of the prices of different product never boost. According James Irish (executive vice president American Rental Association) when considering rent or buy equipment, it depends on the circumstances of the business and the duration of the usage. Short-term payment involves in renting a product rather than purchasing. For example, when you have to use scientific calculator for a couple of months and after that it will be useless for you so rather than buying you can rent to saving your money. However, many large companies lease or rent particular product, which cause less down payment than purchasing. There are many hidden costs of the house ownership that eliminated from the part of renter. Renting does not have any up-keep fees, or any maintains fees which mean that when something damage in the rented thing you just need to call the owner and he will bear the cost of repair. A renter has a better option for investing their monthly savings in other long-term medium like stock exchange. Nonetheless, it is a benefit in the situation of the renting a house or an apartment when a person has to move to some other place you simply need to terminate your lease agreement and move. Usually it is inexpensive, and you can have to dream house or anything for a certain period of time and an advantage of keeping according to your own determination. The amount of insurance fees a renter has to pay is extremely ...