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Renting vs buying compare and contrast
Compare and contrast renting vs buying a home essay
Renting vs buying compare and contrast
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Purchasing a House
A house is not only an expense that is financed by long term debt, it is also an asset that stores value. Purchasing a house can be a daunting experience as it will be the biggest expenditure of one’s life and one needs to ensure nothing goes wrong during such a process. This paper covers two questions in relation to purchasing a house: pros and cons of renting versus buying a house and the role of title search while making a house purchase.
Pros and Cons of Renting versus Buying a House
Personal factors and choices affect the type of house someone chooses to live in. Personal tastes, stage of one’s life, family size and financial circumstances, health and career; all of these affect one’s decision in purchasing and financing
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While purchasing a house also makes someone take up a massive financial debt (mortgage), renting does not and so, when one is in their youth, they prefer to rent than to buy simply because buying a house is not affordable. Likewise, there would be fewer maintenance expenses of renting in comparison to buying. When one is young, they prefer to travel and move around with respect to their job and renting enables one to do so; buying a house at one place would mean one cannot travel much farther for a job. Renting would also enable one to reduce opportunity costs and keep their liquidity for other prospects, in contrast to purchasing. All of the advantages of renting are disadvantages of purchasing/owning a house in …show more content…
A lender may require one to perform title search in order to confirm that there are no liens or claims due on the property being sold by the seller. If there are previous property disputes, any unpaid tax or any other unpaid obligations due on that property, it cannot be resold. One can hire a lawyer or a title search company to check the municipal or town records of liens in name of a particular property. A title insurance can also be taken by the buyer to insure against any lien omissions in a title search (Riegal & Yacht, 2009, p. 177). A lender may do their own independent title search prior to giving you a mortgage and they may even require you to get a title
As a home buyer, what do you need to know about the FHA? It is important to first understand that FHA has strict requirements in place to see if you even qualify for an FHA loan. But even before you start to jump into the home buying experience, it is important that you are prepared for this process. The FHA will require some basic information from you to see if you can qualify for an FHA loan program. The basic qualification that they will require is as follows:
With that in mind, it is important to understand a couple of concepts before analyzing and determining the effectiveness of that document. Although people do not always realize it, the purchase of a home is one of the b...
{Most people have some style and neighborhood preferences which can influence their decision when purchasing a new home.|If you are looking for a new home, chances are you have an idea of what type of neighborhood you want to live in and your preferred style of home before you even begin your search.|More things to consider when you're looking for a new home are the type of neighborhood, schools and home style preferences that you have.} {You can find out about most of this information through online searches, ads in newspapers or by contacting real estate offices.|You can find out a wealth of information by contacting real estate ...
Overall, they argue that the goals of rent control can be reached if they are
middle of paper ... ... The important idea to remember is that you have to keep these costs in mind, or else you’ll be facing issues that you cannot overcome. Your budget should not be limited to buying a house alone, it should include a large margin for such additional costs.
Although the recent tech boom in San Francisco has been blamed for the increased housing demand and the lack of affordable rental housing in the City, the reality is that the shortage of affordable rental housing been steadily climbing for the last 35 years. Rent control is oftenat the center of the controversy regarding the affordable housing shortage. In response to high inflation, and escalating rents, San Francisco’s Residential Rent Stabilization and Arbitration Ordinance was passed in 1979 (Forbes, Sheridan, 1999). Rent control imposes restrictions on landlords in regards to rent increases and evictions. It is estimated that seventy percent of San Francisco’s rental units are under rent control (Marti, Shortt, 2013). Because of the limited rent increases allowed, tenants living in these rent controlled apartments seldom move out, which severely impacts the vacancy rates in the City. Although the vacancy rate among rent-controlled units is extremely low, there are occasions when a tenant may vacate a rent control unit (a job out of the area, the decision to purchase a home, etc.). When a rent-controlled unit is voluntarily vacated, the landlord is allowed to raise the rent to market rates (this is called vacancy de-control); then the rent control annual increase takes effect on the new rent. A landlord will often raise the new rent to the highest possible price the market will allow, in an attempt to recoup the financial loss he is incurring on the units still under rent control. Because of the new higher rent, the previously affordable unit is no longer considered affordable; which then impacts the inventory of affordable housing in San Francisco.
This article explains how one should decide whether to buy a home or rent. Buying a home should be based on decisions of credit report, debt ratios, job stability or relocation, maintenance issues, and financial situation. It explains how not everyone should buy a house. Some people are actually better off renting.
In an ideal world, we would all be able to go wherever we want for as long as we please at no cost to ourselves. Unfortunately, the world we live in is far from ideal and crossing it almost always proves to be an expensive affair. Thankfully, a number of recent developments have managed to take some of the strain off the bank accounts of aspiring explorers everywhere. While the cost of flights remains as expensive as ever (if not more so), the rise of the internet has made accomodation relatively inexpensive, if not downright affordable. Airbnb, for example, has made it possible for backpackers and business people alike to secure accommodation in the properties of private citizens rather than shelling out hundreds upon thousands of dollars
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.
The decision of Young to rent the condominium will provide advantages in terms of security deposit and rental payments for previous months because she did not face a significant financial commitment to pay for it. If she wants to buy the condominium, large amount of down payment needed to be paid by her. Monthly sales broker fees, closing costs, condominium fees, deed-transfer taxes and property taxes should be taken into account in the cost of a condominium fees. The rental fee is more cheaper compared to the purchase of a condominium. Young also a very professional person in investment banking after completing her studies in master. Thus, if she expects to pay at a higher price in the future, this will change the ability to buy and ability to pay the mortgage nowadays. Young consider to rents because it gives her chances to make a distribution and expand its
Most people, today, are looking forward to buying their first property. When individuals decide to buy a house those individuals would have to look at all their options and all the advantages and disadvantages that come from purchasing a house. The economy plays a huge role in the decision whether people will purchase a house, purchase a condominiums, or rent property.
A lien on the property may mean that the person attempting to sell the property is not the legally recognized property owner. Therefore, a lien can prevent you from securing a clear title, and you may not fully own the new property you have purchased. You can hire an abstract company to conduct a title search by delving through public records concerning the property's history to be sure that no lien exists. The title search should also indicate if the seller is legally recognized as the property owner, the description of the property, and details of any lien or other holds on the
As a renter, you are likely to experience increasing rent prices and may eventually be unable to afford living in your rental home. It should be noted, however, that homeowners have property taxes that renters do not have, but those are tax deductible. According to Zillow, there are significant savings from the tax benefits of owning a home that can often make owning equally or less costly than renting. On that note, according to a survey conducted by the Canadian mortgage insurer Genworth, homeowners are in significantly better financial situations because they exhibit more responsible money habits. On top of financial benefits, owning your home provides more stability than renting it.
How much a house will take on the personality of the owner and vice versa is called the partnership compromise between the person and the house. This is essentially the blending of all the good parts of both owner and house that just looks inviting from the street and seems to overflow with happiness. On the opposite end of this spectrum are people who mainly use houses as a place to sleep and clean up after a hard day on the job and view houses as static beings, destined to stay the same way they were when purchased. Whatever the viewpoint of the occupant, what is interesting is how almost all houses can be categorized according to their physical location as well as characteristics. Today, houses will fall into three main groups: urban or city, suburban, and rural.
Some jobs that that individuals have are the bare minimum, which causes them having a hard time to making ends met (Feldman, 2014). Also, higher education is not cheap so young adults have to save up money to continue their education as well to be able to pay back their student loans. Debt from student loans is why many young adults are making the decision to live at home with parents so they can pay back the loans and save up money to get a place of their own later on. Trying to get a place on your own is not as easy especially if you do not have a high credit score so young adult also move back home to build up their credit score to be able eventually move out on their own. When moving back home with parents after being out on your own is not an easy decision because usually after being on your own you gain independence and moving back in the individual may feel as he or she may lose that respect.