Buying or Renting: You Make the Decision

Buying or Renting: You Make the Decision

Nick Helms

COM/156

December 18, 2010

Elizabeth Keavney

Buying or Renting: You Make the Decision

Home ownership has many advantages over renting an apartment. A person, a couple, or a family has many options to discuss concerning buying a house or renting an apartment. This is not an issue that should be rushed into or looked over quickly. It requires research for both buying a house and renting an apartment. Once all the options have been weighed, home ownership is the smartest option. Knowing the important information to consider before making this decision is crucial. To prove home ownership is better than renting an apartment, three topics must be observed: cost, freedom, and privacy.

Some people think twice before buying a house. It could be the most important decision a person or couple will ever makes in their lives. They are scared of commitment and there is a great deal of it involved with buying a house. Mortgage payments, home owner’s insurance, property taxes, and maintenance are a few costs associated with buying a house (Marilyn, n.d.). When these costs are viewed, people wonder how this could be affordable. Why would renting an apartment not be the best choice? Mortgage payments will eventually cease when ownership takes place. Normally when buying a home, a loan is taken out with a bank. This loan is typically set up with monthly payments over a 30-year period. Lendingtree.com (2010) shows a mortgage payment estimation of $456.02 per month. This calculation is based on a 100,000.00 dollar home with a 10% down payment, and a 30-year fixed rate mortgage at 4.50% interest rate (Lending Tree, LLC, 2010). The average cost of an apartment is directly linked with the area in which the apartment is located. Rent must be paid monthly the same as a mortgage. A person will not have the opportunity to pay off an apartment and be free from monthly rent. For a mortgage, the monthly payments will cease whenever the...