Buying a house is what everyone wants, but renting may be the way to go for certain people. The choice of buying versus renting a house can be a big financial decision. When making the decision of buying or renting a house it is important to consider a few things such as cost effectiveness, the positives and negatives of equity, and handling maintenance problems.
One positive outcome of buying a house is it is a better investment in long run. Buying a house would save a person or family around $61, 500 and that renting would save someone $15, 000 (Tugend, 2011).
When renting you are paying the landlord a monthly payment rather than investing into a house.
Another major advantage of buying a house is each time you pay your mortgage you earn more equity on your house. With the real estate value right now is the time to buy because when prices go back up you will earn more equity. The property’s equity increases as the debtor makes payments against the mortgage balance.
Finally, when owning a house it is your responsibility to handle any maintenance problems where as the landlord is held responsible to fix anything maintenance related when you are renting. It is important to make sure when buying a house you may have the funds if any maintenance problems occur. Homeowners are responsible for buying any maintenance items such as lawn mowers, snowblowers, and washers/dryers (Tugend, 2011).
These important facts should help conclude the decision of whether or not you should buy a house.
We discussed how cost effectives, equity, and managing maintenance all play a part in the decision of buying versus renting. Now that you know the hidden fees of buying a house, is it in your best interest to buy or rent?
The reason I decided on this sequence is because I felt like it was the proper order in explaining the differences between buying or renting a house. We were taught to minimize how broad our topic was. Explaining the cost effectiveness is first because I feel like you would want to focus on the whole package of money when it comes to a house.
There is no point into look at the equity or maintenance if you cannot afford a house at all, or you need to see if you can afford a house. Equity went next to show the gains from buying a house. Lastly, I wrote about maintenance problems. I felt like this was not as important as the other topics, but important enough for people to take into consideration. After reading my outline I felt like I did a good job tying all my points together and that the order fit perfectly for the topic I chose to write about.