Buying vs Renting a House
Name
Course Number
Professor’s Name
Date
Buying Versus Renting a House
Abstract
Shelter is one of the three basic needs that are essential to human survival in the world today. Both education and clothing have been subsidised in many countries to be cost effective and in others even free. This leaves shelter as the most expensive and intensive of the three. It is for this reason that buying a home as compared to renting one becomes an emerging issue. The cost/benefits of the two options should be critically looked at and the convenient of them arrived at. This is done while considering the real estate market and location or area under consideration when buying or renting a house. The improvements and maintenance on the house once rented or purchased is a key determinant in making the deductions and conclusions on the same.
Prospective buyers today purchase houses mainly with an aim of financial gains. This is expected to be through equity, which involves the acquisition of a house through a mortgage then gradually increasing the ownership as the re-payment goes on. This could go on up to the extent where the level of ownership exceeds the loan owed by the buyer, upon which the buyer can now acquire loans against the percentage owned of the house, for use in other major acquisitions. Freedom is another drive for the buyers to own homes.That freedom from paying rent, the ability to personalise and customise purchased homes and the fact that there are no surprise evictions by any property owner, gives a buyer self-satisfaction.
Renting on the other hand, involves living in a property owner’s house and paying for it monthly as agreed upon or depending on the size and utilities available in the area of the house. It has its advantages including flexibility, reduced costs of living and increasing the credit worthiness of an individual. It is an option preferred by those who cannot afford mortgages and always on the move from one point another. In some rented houses,
Course Number
Professor’s Name
Date
Buying Versus Renting a House
Abstract
Shelter is one of the three basic needs that are essential to human survival in the world today. Both education and clothing have been subsidised in many countries to be cost effective and in others even free. This leaves shelter as the most expensive and intensive of the three. It is for this reason that buying a home as compared to renting one becomes an emerging issue. The cost/benefits of the two options should be critically looked at and the convenient of them arrived at. This is done while considering the real estate market and location or area under consideration when buying or renting a house. The improvements and maintenance on the house once rented or purchased is a key determinant in making the deductions and conclusions on the same.
Prospective buyers today purchase houses mainly with an aim of financial gains. This is expected to be through equity, which involves the acquisition of a house through a mortgage then gradually increasing the ownership as the re-payment goes on. This could go on up to the extent where the level of ownership exceeds the loan owed by the buyer, upon which the buyer can now acquire loans against the percentage owned of the house, for use in other major acquisitions. Freedom is another drive for the buyers to own homes.That freedom from paying rent, the ability to personalise and customise purchased homes and the fact that there are no surprise evictions by any property owner, gives a buyer self-satisfaction.
Renting on the other hand, involves living in a property owner’s house and paying for it monthly as agreed upon or depending on the size and utilities available in the area of the house. It has its advantages including flexibility, reduced costs of living and increasing the credit worthiness of an individual. It is an option preferred by those who cannot afford mortgages and always on the move from one point another. In some rented houses,