Rent vs. Buying a House

Rent vs. Buying a House

Crystal N. Thompson

BUS640: Managerial Economics

Instructor:  Ruizhen Hardin

April 25, 2011

Abstract

Many people in today’s society have to make the decision to either rent or buy a home. This question has been brought forth since many people or out of jobs and foreclosure rates are at a high now making it harder for people to be qualified home owners. Most people have damaged their credit and can not be approved to buy a home which leaves them with one choice and that is to rent. Other people just prefer renting because they do not want to deal with the hassles of being a homeowner. No matter what a person’s reason might be there is still that question which lingers in the air. Is it better for a person to rent or to buy their home?

Rent vs. Buying a House

Buying a home can be an exhilarating experience for anyone. However, in some cases a person just might be better off continuing to rent a home. There are many rewards to a person buying and owning their home. Although, it is not for everyone, and buying varies from individual to individual. Many people now are leaning towards renting because of the economy but this could change in the near future. So is renting a home a better choice compared to owning a home?

The method of coming up with a decision of whether to rent or buy a house is depended upon many issues. For the decision to rent a person knows they will be paying rent to a landlord at the end of each month or what ever the agreement that is set before moving in. That is compared to paying a mortgage payment on a home which in 15-30 years could be owned solely by that person. Many people are caught up by theses situations and fall for both of the choices above depending upon their situation. So a person should seek and study the factors in which leads them to do any of the two scenarios with careful investigation before making a decision on what would be the best outcome of them; and that is to either to...