...Renting vs Buying There are advantages to buying your own house as well as advantages to renting a home. With that being said there are also disadvantages to each. The pluses and minuses can be financial, personal or simply a matter of convenience. Advantages to buying a house of your own could include the equity you are building, you can customize however you want, you can have some stability, and the value of your house can increase. When you buy a house you can build equity in the property. Simply stated, this is the difference between the value of the house and the amount you owe on a mortgage. This equity can be used if ever needed as a line of credit or eventually you will be able to put your house on the asset side of your balance sheet. When you own a house you can choose to tear down walls, paint the walls whatever color you want, or remodel the kitchen to your perfect specifications with no limitations, besides your budget. Also, when you buy a house, you don’t have to worry about the owner selling the property and the new owner wants you out of the house. There is no worry about your rent increasing, landlord not renewing your lease, or having loud neighbors if in a multifamily house. The last advantage is your home can increase in market value, possilbly making it worth more than you paid for the house. Disadvantages to buying a home could include paying for all the repairs, expensive mortgage payment, and value could depreciate. When you own a house...
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...Why Renting in Today’s Economy is better than Buying a House Matt Harrell COM/156 November 7, 2010 Karen Campbell Why Renting in Today’s Economy is better than Buying a House Foreclosure crisis is at an all time high across most large metropolitan areas in the United States. Seattle- Tacoma- Bellevue metro area registered the sharpest annual increase, 71% or one in every 129 households received a foreclosure notice. California, Nevada, Florida, and Arizona remain the hotspots for foreclosure across the nation according to RealtyTrack Incorporated Rick Sharga a senior vice president at RealtyTrack quoted “The epidemic is spreading from the states at the ground zero of the foreclosure problems out into areas that had not been previously affected.” One of the latest signs that the foreclosure crisis is worsening across the nation is, high unemployment, slow job growth, and homeowners are uncertain about falling home prices. Concerning housing, he or she has options. He or she has an option to rent and an option to buy. Renting an apartment is a better option than buying a house both renting and buying has many advantages and disadvantages. By explaining these advantages and disadvantages, I will persuade him or her into renting over buying. While renting he or she can save money, instead of spending money. “A survey conducted by Harris Interactive for the National Apartment Association in May 2010 found that 76% of those surveyed now believe that renting is a better...
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...Buying Vs Renting House English 107-110B-30 Margaret Draper AIU Online ABSTRACT When deciding on buying a house can be confusing. But it if it is a better financial option to move for a family than renting which requires a consideration of cost and options that people often neglect to factor on. Buying Vs. Renting House House is probably the largest purchase that you will have to make in your lifetime, but whether or not, it is very important to make sure you decide which option is better for your family. And making the right decision. Many people prefer the flexibility of renting, and others want to the security of owning their own homes. That is why it is very important to know the advantages and disadvantages of buying versus renting. While deciding to rent or buy housing can be difficult making a decision. This paper will discuss the pros and the cons of each and will have some good research on the personal experience and individual assessment. I believe that buying a house is a much better option. The unemployment rates have increased and therefore there have been a lot of foreclosures on houses. It can be difficult deciding on buying houses. Renting- Advantages * More fixed costs for the term of the house. * Not giving equity but not losing it either * When the lease is up, you can just move. * There is generally less work on maintaining a home or improvement. * Smaller amount of upfront cash. Renting-Disadvantages ...
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...Home Ownership Versus Renting an Apartment COM/156 9-26-2010 Axia College of University of Phoenix Home Ownership versus Renting an Apartment The American dream for most people today, is to own his or her own home; even with the market having a downturn because of the heavy use of variable-rate mortgage loans. With house ownership the responsibilities are greater because the owner is responsible for all repairs and maintenance. This means that it is important to have savings established to be able to cover such situations as they arise. The ability to own a home for younger families that are just starting out is not always possible. So renting an apartment is a way to get settled, and to work toward setting aside the needed financial resources to purchase a house. For people who are working for a short time in an area renting is a better option, because they do not have to worry about maintenance costs as well as the steps of selling a house, the closing costs, and paperwork involved. This leads to the simple fact that in the market today owning a house is better than renting an apartment. There are several benefits to owning a house that have long-term advantages over renting an apartment. When a house is still under a mortgage the interest that is accrued is tax deductible with annual income taxes, this helps to put aside much needed income to provide for any unexpected maintenance costs. A responsible home owner should already have an escrow account in place...
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...Compare/Contrast Essay: Renting versus Buying Renting a home allows renters to pay someone to live in their home for a period of time. Buying a home allows homeowners to pay someone to gain ownership of their own home. There are pros and cons to both renting and buying. It is a great idea to weight the advantages and disadvantages of both. This process will help to determine whether renting or buying will best fit their needs. In some ways renting and buying could be compared. Potential renters or buyers are able to choose the neighborhood they wish to live in. Some prefer to become longtime renters and are able to live in a neighborhood for long periods of time. Homeowners purchase homes within a community with the intentions of staying there for years. Both require money and paperwork upon moving in. Renters have to pay the first month’s rent and a security deposit to move in. They also have to fill out a rental application and sign a lease. Homeowners have to provide a down payment as well as pay closing costs upon moving in. They also have to fill out a loan application and sign their mortgage. In addition to comparisons, renting and buying are different in many ways. For instance when renting, the renters are not responsible for any maintenance of the home. Any maintenance needed is the responsibility of the landlord/superintendent. This saves the renter the headache of having to locate someone certified to fix the plumbing or the central heating and...
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...Renting Vs. Homeownership Jasmyn Gould ECPI University Online Thesis: Most people would either like to rent or become a homeowner, but there are several factors that need to be address before making the decision; these reasons include financial status, lifestyle, tax deductions, privacy, commitment, savings, utility cost, and a whole lot of research. Today’s housing market is on the rise, so this is the time to jump in or is it? You are probably asking, what advantages do I have if I purchase a home or rent? What would be better for me financially? It is important to know some facts of renting vs. homeownership before making such an important decision. Homeownership is not for everyone. I believe it’s up to the individual if they want to rent or buy. In some cases people are just better off renting. Before buying a home, it’s important to consider how that purchase will affect your finances and your lifestyle. Homes typically increase in value by allowing you to build equity in it, which will offer an investment for the future. Every time a mortgage payment is made, it is applied to your balance which reduces the loan that was taken out. Your monthly costs are usually more predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Which means, the monthly amount of your mortgage will not increase for the duration of the loan. An article from TurboTax said (2013), “You know that you can get an income tax deduction on the mortgage...
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...There are many advantages and disadvantages in each decision. Explicit costs are easily seen by consumers. Implicit costs and opportunity costs are not always recognized and often looked over when making decisions. I wanted to see the costs in terms of both of these. I am focusing on the costs of each in order to get the total economic cost in the end. The economic cost is able to give me a value for both renting and buying over 30 years. My analysis has led me to the conclusion that buying over the long term is going to be the best choice. When you decide that is it time to move to a new home, is it better to rent or purchase? I will talk about this topic in detail in the following paper. I am currently facing this decision myself, along with many other Americans every day. I am currently renting, with the current economy and low interest rates I am looking at buying a home. I wanted to look at the costs of renting verses buying so that I can see the factors and costs involved in the decision making. Whether to buy or rent is a question that most people face in their life. This is a big decision for many people and involves many factors. It relies on where people are in life and where they want to be, however it also does have economic impacts as well. Being that it is one of the biggest decisions many people would make, it is not one to take lightly. My discussion will present the costs associated with buying and renting, some advantages to buying and renting, the analysis...
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...Movie Rental Industry Introduction People born in the early 80’s have the advantage of experiencing the digital age from birth. Today people can go online to Netflix, Blockbuster, or VUDU and rent a movie to stream immediately to their flatscreen HDTV or computer monitor. This is a far contrast from mom and pop VHS video rental stores that emerged in the late seventies and early eighties. The immediate download of videos without having to drive to a brick and mortar building to return the video without incurring late fees is a thing of the past. In 1977 George Atkinson opened the first video rental store in Los Angeles offering videos for rent at $10 a day with a $50 or $100 membership to raise capital[1]. Since that first home theater store George opened, there have been a plethora of mom and pop video rental stores that sprouted up. As video renting became more popular due to the availability of the VHS recorder and the DVD player, larger movie rental chains entered the market with better buying power and lower prices. These larger chains were able to offer rental movies at lower prices with a larger selection[2]. The technology revolution has changed the landscape of video renting. Using Porter’s Five Forces model, entrance into the video rental business will be examined. Technologies used to stream movies, download full length movies, renting movies from store front, and renting from kiosks are the available avenues for the budding entrepreneur. With new...
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...HOW RENTING AN APARTMENT VERSUS BUYING A HOME BENEFITS ONE’S FINANCIAL PLAN TOWARDS PURCHASING A HOME IN THE FUTURE. How Renting an Apartment Versus Buying a Home Benefits One’s Financial Plan towards Purchasing In The Futu We apprehend a vast amount about renting an apartment versus buying a home. Each advantage and disadvantage is deluged with persuasion on the process of making renting or buying as uncomplicated as possible. Many individuals do not believe renting is the better alternative. Renting property whether it’s an apartment, condo, townhouse, duplex, or home does not allow the person to own while renting, or build equity within the property. The ability to purchase a home is a great milestone of achievement for any individual. However, renting to start off when you first move out from your parent’s home is the better option for an individual’s financial plan for today and the future. It too can better position an individual to purchase the home at a time when it’s most feasible to their budget for benefits financially. Renting should be considered from various aspects such as size, maintenance, relocation cost, and financial growth. Size is the largest contributing factor for reasons to accommodate all parties residing in the unit. It will demonstrate how buying a home in square footage in comparison to the mortgage would be greatly higher than renting. Generally, apartments are larger in square footage and cheaper according to price in essence to monthly...
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...apartment sweet apartment? Owning a house or renting an apartment is significant to many individuals who like the concept of coming to their living quarters and knowing this is theirs. There are many advantages and disadvantages to owning either a house or renting an apartment, but where they live relies on the personal needs. There is much to consider between the two because the area that one wishes to live depends on how flexible their life styles are. The main decision is left to you and the main idea is what is the best choice for you. Preferably I believe in the concept of owning ones house rather than renting from someone else because the property is mine and owning a home adds more stability in my life. Both the house and apartment are stable living quarters, but its how concrete one wants to stay with their property which lies the question. When owning one's house, he or she is in full control of the home and does not have to worry about anymore payments to the house. That stability allows he or she to control the inputs on what to put into the house but its all an option; a way of controlling all factors of ones house. "As a home owner, you have complete control over when you move versus moving when you may not want to, You will always have peace of mind living in your own home" (Should I…, 2007). Basically controlling all perspectives that an owner could have with their home. On the other hand, renting is a very flexible means that one is only ...
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...Unit 5 Written Assignment a. Describe in detail the advantages and disadvantages of renting versus owning a home. b. What is the role of the title search in making a home purchase? Prepare an essay approximately 500-650 words in length. Cite references to material that you use in preparing the essay. Introduction There are many things that we aspire to do during our lifetime as human beings. If we were to list down all our aspirations, we would find the task to be such a daunting one. In his hierarchy of needs theory, Abraham Maslow described man as a perpetually wanting being, meaning to say that new and higher needs surface once we fulfil our current needs. All our wants and needs considered, it can be said that we have an insatiable desire for both material and immaterial things. There are things however, which reign supreme among our needs and wants, things which can give us some certain degree of satisfaction. Having a roof over our head is one such thing and whether we manage to own a house or rent one depends on our circumstances and choices. This essay makes a comparison between owning a house and renting a house and looks at the economic implications of each together with the psycho-social...
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...Nowadays we rely on computers in every aspect of our life’s, to make bank transactions, to run automobiles and even at home. Most business people use computers to communicate since it is much faster and effective. Advantages of computers 1. Computers are used as a tool for fast communication, one can send emails or scanned documents to another person and the message is received by within some few minutes. 2.a business man can use a computer for the purpose of record keeping one can store a lot of information in a computer ,it eliminates the use of files which can use a lot of space for storage. 3.it is easier to find a specific file if you want to share the information with the use of Search an application that allows the user to find documents very easily. 4. People can communicate across the globe, one can send an email to a person who is miles away and it is cheaper than a phone call. 5. People can work at home, with a computer one can work at the comfort of their house since you can submit your work via emails and a boss can also give instructions to employees with the use of a computer from his house. 6. Accuracy, a computer is more accurate than a man. 7. Even the blind can use computers to communicate since they have special programmes for them. Disadvantage of computers 1. Health risks, by sitting down in one place one can suffer great risks of growing fat and eyesight can be damaged if one uses the computer. 2. Unemployement, due to the ability of...
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...Buying or Renting: Which is better for you? Your Name Com/156 Current Date Your Instructor Buying or Renting: Which is better for you? Introduction Many times we are faced with the challenge of choosing between buying a home and renting one. There are various advantages and disadvantages related to each of these options that an individual has. It is the dream of each individual to own a home in a good environment which is secure and peaceful. There are two options that one can choose from when considering a home. One can either rent or buy. It is important to carry out a thorough investigation on each of the options and make an informed decision. The decision of buying or renting any asset is crucial and should be critically analyzed. Therefore, it is important for one to take into account the benefits and costs involved in each option before deciding on the one to take. One might choose to use a buy vs rent comparison tool such as the mortgage calculator that can be provided by a lender or real estate broker. The Rent versus Buy Comparator allows the user to compare their estimated financial position after 7 years of renting with their estimated financial position after 7 years of home loan repayments (Realtor.com, n.d.). This tool will allow the buyer or renter to compare the possible financial cost and assists in making the decision whether to buy or rent. Moreover, most finance calculators will take into consideration the rent, rent insurance, expect...
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...Date: August 28, 2011 To: Pat Caring, Chairperson of the Board of Directors From: Sharie Evans, Director of Communications Subject: Video Conferencing and our Expanding Business Video conferencing is becoming the norm for business communication. Our technology systems are advanced and our need for communication is great. As we expand our business, we become aware of the need to improve our communications systems. We have all used tele-conferencing for communicating when immediate access to a particular person(s) is needed but have you ever wondered what it would be like to be able to see and speak at the same time to that individual? Instead of trying to explain a complicated matter verbally over the phone, what would the reality of showing them be like instead? Incorporating a video conferencing system into our daily business endeavours would bring all our offices throughout Canada as close as humanly possible without ever having to leave the comfort of the office (Tredent, 2011). Here is an overview highlighting the benefits of introducing video conferencing into our corporation. Benefits of video conferencing There are many benefits of video conferencing that affect the business and the employee/employer relationship. The norm for young families now is the increased desire for family time, and as we hire fresh associates we must take into consideration the effect of excessive travel required in our job. Travel is expensive and time consuming; car rentals...
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...Table of Contents Question 1 – Purchase Price 2 Question 2 – Forecasted Income Statement and Accompanying Assumptions 2 Question 3 – Net Present Value Calculations and Accompanying Assumptions 2 Question 4 – Sunk Costs and Opportunity Costs 3 Question 5a – Main Issues 3 Question 5b – Alternatives 4 Question 5c – Qualitative Issues 5 Question 5d – Quantitative Analysis (Done in Questions 2 & 3) Question 5e – Recommendation 5 Question 6 – Useful Information 5 Appendices attached 1. The purchase price of the new condominium townhouse is found by taking all the costs that were incurred by George and separating them into relevant and irrelevant costs. As seen in Appendix A, the relevant costs consist of the deposit, the down payment for the mortgage, and the principal mortgage. The deposit of $15,000 was paid directly to the builder. The down payment left to pay to the bank is $25,000, since we include the deposit as part of the down payment (40,000 - 15,000 = 25,000). The mortgage of $155,000 is also included in full since it is required in addition to the down payment. The occupancy fee of $1,400 per month is considered irrelevant when determining purchase price because, in essence, it is just rent expense and should not be included in the Adjusted Cost Base of the condo. 2. Forecasting the income statement (seen in Appendix 2) for rent revenue over the next 5 years, there are several assumptions that need to be...
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