owing vs renting a house

Many of us have, at one point thought of how nice it would be not to write a rent check every month, but have you done the math? Nothing can make you feel more secure than owning your own house, unless buying a home will create financial problems of its own. The reasons you can think about buying a house includes: equity, tax deductions and maintenance choices. On the other hand living in an apartment can be easy. The reasons to rent an apartment may include: flexibility, career and income uncertainly, bad credit, and the best you won’t have maintenance expenses and most utilities will be included. It is a difficult choice to make, that’s why comparing and contrasting will help you decide what’s best, if buying a house is better or renting. Buying a house in order to build equity is one of the main financial reasons many people end up buying houses. When you pay rent, you will technically be paying your landlord’s mortgage, or if they already paid the house off you will be adding equity to his/her bank account. However, when you decide to buy a house, the money you pay each month will little by little increase your degree in ownership. As you continue paying your house mortgage and living there the original price of the house will not stay the same. The cost of the house will be more likely to be balanced by accrued equity and with time the house value will increase. If instead of increasing the house value decreases, you can always refinance your mortgage. Nowadays the economy is a financial roller coaster; the decision to rent an apartment will be an easy one. With today’s economy, the process of renting an apartment will be faster than buying a house. One of the main reasons will be the low initial cost needed to rent an apartment, which will make you save more money.
You will definitely have yearly costs because each month you will be paying mortgage, maintenance cost, property taxes and will even need a homeowner’s insurance. All of these, if add up is a lot of money. The good thing about yearly costs is that in some cases most of your expenses with your house will be tax deductable. The resulting tax savings is accounted for in each item’s totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payment becomes smaller (NY times). Unlike house owners, renters cannot have this deduction, but have in mind that only rent and utilities are renters main housing cost.
Owning a house will also give you freedom to make the maintenance choices and create whatever you would like in your house. When you live in your own house, you can decide how to approach maintenance. You can either do it yourself or you can even contract someone to do it for you. You have the option to paint the walls of your house in any color you want or even build a new room if you want. Unlike renters, they don’t have these options; renters get what the owner offers.
Comparing to what was previously stated; living in an apartment is way too easy.