...Annotated Bibliography Tesa S. Malone EN 116: Speech Herzing University The article in Renting Versus Buying a Home, states that when considering buying a home, determining the annual rent to the purchase price ratio is very important. As far as taxes go when becoming a homeowner mortgage interest and property tax can be deducted from your taxes. Although the author is anonymous, this source is credible because it is recent and scholarly. (Renting versus buying a home. (2015)....
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...Renting an Apartment is a better option than buying a House (Week 2 Day 7 Assignment) Is renting an apartment a better option than buying a house? My argument is buying a house is a better option than renting an apartment. The point of view will support my topic by including facts, statistics, examples and details. The point of view will include the pros of buying a home versus the cons of renting an apartment, such as buying a house is an investment versus throwing money away, buying a house can be a tax deduction, buying a house is an investment you can live in, having a fixed mortgage rate in buying a house is a better financial option than having to deal with the inflation of rent every lease renewal, last but not least buying a home will allow you to update and upgrade as you wish, inside and outside. My point of view will also include facts and evidence against the opposing position. An argument cannot be one sided. Including evidence such as an apartment is rent and rent is money that is not an investment, you can add up all the rent you have paid in the past twenty –five years and have nothing concrete to show for it versus paying a mortgage for the past twenty-five years and could own the house in another five in most cases. In an apartment you cannot upgrade as you wish, you may risk rent increasing every year upon the lease being renewed and new management can take over and you lose your apartment. With a house, you get a garage, with an apartment you have...
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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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...Buying Versus Renting Ashley Mawhorter 1/11/2011 Axia College of University of Phoenix Every American has dreamed of owning their own dream home, whether they are young or old. Still many Americans choose to rent apartments. Why is this? There are many more pros when individuals decide to buy a home. That is why buying a home is a better option than renting an apartment. Jumping right into the first home one sees is also not the proper way to buy a home. Much time and research needs to be done and many things taken into consideration before deciding the best decision. Do I want to have a landlord, or be the landlord? How much can I afford if I choose to buy a home? Where do I want to be located and what style home am I looking for? Are there any pros and cons to buying verse renting? How much would property taxes be yearly? These are all important questions to take into consideration, and that will be covered in paragraphs to come. First and most important is figuring out how much each individual can afford. On ginniemae.gov there are two calculators that can help to determine individual financial status. The first calculator helps individuals to determine the advantages and considerations of owning verse renting a home (http://www.ginniemae.gov). Using the calculator I have come up with an example. If I were renting a home that cost 800 dollars a month and I wanted to buy a house I found for 100,000 I would simply calculate the percentage of down payment, length of...
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...Renting an Apartment versus Buying a Home Composition II / 156 March.20, 2011 Outline for my Essay Why should we buy a home vs. rent an apartment? There are a lot of factors to consider for both. There are a lot of steps to finding out what you would want if you buy a home and if you rent an apartment. The factors can be overwhelming and yet very important. So the first thing you need to do is get all of the information that you are looking for and put it down on paper. Then you need to weigh the pros and cons of them. Just to make sure you understand what it is you have gain and give up for each type of dwelling and how you want to own it. You also want to look at the financial part of it as well. Make sure you can afford what you are looking for or look for what you can afford. In the end you will be able to logically decide on what to do with your dilemma. So there are many factors however there are also the benefits and what you want to be responsible for and not be responsible for. So the choice is up to you and only you can make it happen. I am just giving you the information to make an educated decision. I rented for years before my husband and I decided to buy a home. It came years after and when our daughters were elementary age. I enjoy being a homeowner however I also enjoyed renting cause of not having to worry about doing all the stuff the apartment complex had to do because I paid rent. This is just a scratch on the surface of the renting...
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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 an apartment is a better option than buying a house Home buying is not for everyone in today’s economy renting versus buying depends on many factors such as how much up front money is available to you, how quickly buying or renting will rise, and how long you plan to live there. Inflation has made buying a home more difficult because the credit standards are much higher consequently these circumstances has made renting a better option than buying for the ones that are on their own for the first time, buying a home is a future dream and because there are many cost associated with home purchase, we have to consider which is more beneficial to your bottom line. Weigh the facts with a caveat that something’s are not as great as they sound, and weigh the options so that there are no surprises when that moment comes. Some might see renting as throwing your money away, but realistically speaking, if your credit is near perfect then the best choice for anyone who is not credit worthy, is to rent an apartment. There are a lot of reasons that shows that it might be a better option, but this shows that you have to be effective. Another point to remember is how long the buyer has to save up for the down payment so that they are limited to other investing that could be making large profits. Renting is much easier because you don’t have to all the up front cost or have the best credit, and if you are looking to stay between five to six years then the better option is renting...
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...Running Head: Choices 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...
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...Foreclosures | Leave a Comment People prefer to rent than to buy a house. The number of people that are very much concern about owning a home hasn’t doubled up until now, this is primarily because so many people are suffering from financial hardships. A lot of real estate owner these days will tell you that it isn’t the right time to buy a house because a lot of people are suffering foreclosure trauma. This is also the same reason why there are people who prefer to rent a house than to buy one too. In so many instances, it will be best if you will know some good advices because there are so many situations that just don’t go coherent lately because of the financial crisis going on. It is best for you to know some of the most reliable reasons why a lot of people prefer to rent than to buy a house. Here are some of them: Interest rate –a lot of people know that they cannot pay for the houses they will acquire primarily because their credit standing won’t allow them to do that too. Having a secured loan is also a decent thing to do these days. A lot of times, your mortgage broker cannot give you the right type of package you need because they are not available. In this case, you need to delay the purchases you will make to be able to make sure that your money will be worthy. Remember that it is so hard to engage in a house buying knowing that you don’t have the right amount needed to pay for the property in whole. Lose of job – a lot of people nowadays are suffering...
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...2010 Individual Assignment COM176 University of Phoenix Buying a house is better than renting an apartment In today’s society, buying a house is better than renting an apartment. Buying a house is an investment that pays off in the long run. Whereas, renting is more in the “right now” and you pay a monthly rate depending on the apartment guidelines. Most people, mainly the average person, would purchase a home for many different qualities. These qualities would consist of or somewhere down the lines of having ownership, investments and payments. First, purchasing a house would give one the sense of having ownership. Ownership is having the legal right of owning something, in this case owning a house. Owning your own home allows one to have a piece of mind. Giving them the freedom to do whatever it is they may want to do such as creating a garden, building on to their home, or placing an out door pool in the backyard etc. Meanwhile, renting will not get you ownership. You are temporally renting a large amount of space. Renting does not necessary give you a piece of mind, but it allows you to sleep at night. Renting also does not allow you to plant a garden, build on, or place a pool on the lawn. Therefore, buying a house is better than renting because you own your own space and can do whatever it is you want the way you want. Secondly, buying a house is better than renting because of the investments. Investments are usually created by putting money...
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...Student Name | | Course and Section Number | Program of Study | FIN 1103 | | Finance FIN 1103 Week 7 Individual Work Deciding to Buy a Car and Renting Versus Buying a Home Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week7.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 7: Individual Work basket in the Dropbox. | Objective: Compare financial alternatives for major purchases Locate the Financial Planning Case on page 243 of your textbook and complete Case 1. Locate the Do the Math on page 280 of your textbook and complete number 3. Financial Planning Case 1: The Johnsons Decide to Buy a Car | After three years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry and Belinda estimate that they could afford to spend about $10,000 on a good used car by making a down payment of $2,000 and...
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...Running head: RENTING V BUYING DECISION Renting a House v Buying a Home Decision By Odessa Millan CMB 513 – Advanced Managerial Finance Presented to the faculty of Cardinal Stritch University In partial fulfillment of the requirements for the degree of Masters of Science of Business Administration September 27, 2011 Table of Contents Executive Summary.……………………………………………………………………….….. 3 U.S. Housing Market Trends.…………………………………………………………………. 3 Waukesha Housing Market Trends... …………………………………………………………. 4 Factors in Buying a Home…. …………………………………………………………………. 4 Factors in Renting a House..………………………………………………………..………….. 6 Recommendations ……………………………………………………………………….…….. 7 Conclusions …………………………………………………………………………………….. 8 Bibliography ……………………………………………………………………………...…… 10 Appendix A – Home for Sale.……………………………………………………………….…. 11 Appendix B – House for Rent.…………………………………………………………………. 14 Chart 1 - Existing 1-Family Home Sales: United States ………………………………………. 15 Chart 2 - Share of Distressed Properties in Sales of Existing Homes …………………………. 15 Chart 3 - Number of Sales ……………………..………………………………………………. 16 Chart 4 - Median Sales Price.…………..………………………………………………………. 16 Chart 5 - Average Price per Sqft ………………………………………………………………. 16 Chart 6 – Number of Listings… ………………………………………….……………………. 17 Executive Summary This technical paper analyzes scenarios of renting a house and purchasing a home in Waukesha, Wisconsin. The format of this technical paper includes an overview...
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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 Homeownership to Renting An individual in the market for a new home would benefit more from buying versus renting. With the current economic situation, there has not been a better time to buy; however, this requires an individual to have steady employment and financial stability. I will show the benefits and drawbacks of both buying and renting through comparing and contrasting four different areas: expenses, maintenance, flexibility and family. There are different financial needs for both homeownership and renting an apartment. For example, a three bedroom home in Lakeville Minnesota is selling for $255,000. The mortgage payment on this amount with taxes and insurance would be $1500 per month based on an interest rate of four percent. Closing costs and a down payment would be necessary for the purchase of this home. To purchase this home you would need to qualify for a bank loan with steady employment and an annual salary of $55,000. A three bedroom rental in Lakeville Minnesota is priced between $1199 and $1289 per month. An employment history report and a down payment of $1000 would be required to rent this apartment. It is going to require more finances in the beginning to buy a home than to rent an apartment. There is a difference in expenses between owning a home and renting an apartment. In the Lakeville home the utilities would be estimated to cost between $450 and $500 per month. In the Lakeville apartment, the utilities were included...
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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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