The Advantages And Disadvantages Of Buying And Renting

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In this paper, I will be investigating the advantages and disadvantages of buying a home compared to those of renting. Then, I will draw a conclusion of which option is the most beneficial in today’s real estate market. Finally, I will examine the role of conducting a title search when making a home purchase and discuss the importance of ensuring it is complete.
Buying or Renting The main advantage to owning a home is the security blanket feeling one gets from being a home owner, having a stable base from which to raise a family, having a “home sweet home”. For generations, it has been a tradition to buy a home as one’s family begins to grow, a sign of progress and stability. On a financial basis, a home can be considered a storage of wealth, using a mortgage as a forced savings plan, increasing the equity as mortgage payments are made. Tax deductions are also an incentive to purchase a home especially in the earlier years of paying off a mortgage when much of the interest is being paid, and subsequently deducted from income tax. Home ownership can also allow access to home equity loans, that afford lower interest rates than some other debts and are also tax deductible (Trulia. 2014, February 28). Most …show more content…

In some cases, the landlord may not be compatible with the tenants or may be reluctant to make much needed repairs to the home. After comparing the advantages and disadvantages of buying and renting it becomes clear that despite the advantages of having a place to call your own, financially renting is a better choice. With the money that would have gone into buying a home going towards other investments, a nest egg of greater value than home equity can be achieved in the same amount of time. Also, renting allows for more flexibility to face the unpredictable changes of life.
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