Renting an Apartment vs Buying a Home

Renting Is Better Than Buying a Home

Even though buying a home means that it belongs to you, renting can save money because all repairs are the landlord’s responsibilities majority of the time; so is the lawn maintenance. Tenants do not have to worry about paying taxes or homeowners insurance, and it is easier to relocate without any loses unlike buying a home. Don Debat for Sun-Times Media mentioned “the U.S. Census Bureau’s Housing Vacancy Survey reported that overall homeownership has declined five years in a row from a 20-year high of 69.1 percent in the first quarter of 2005 [ (Debat, 2010) ].”

“While buying a house does force you to “save,” historically the returns from investing in the stock market are much greater than investing in real estate,” according to Bob on Christian Personal Finance. If a renter saves any kind of money per month between their rent and what their proposed mortgage may have been, that money could be invested into the stock market and build up over a certain number of years. . Yes owing a home is a better choice financially than renting, but it is because someone is building equity instead, at least that is what we are taught to believe. “In our hypothetical scenario, a renter who invested in the stock market with the $85,000 down payment plus the monthly difference between the $1,515 rent and the $2,690 home-buying costs would be over $500,000 better off after 30 years than the homebuyer, assuming 4% average appreciation,” stated Roth with Get Rich Slowly Personal Finance That Makes Cents [ (Roth, 2007) ]. New York Times and Business Day, calculations for purchasing cost spent over six years for buying a home was $41,280 but for renting it was $1,100. The yearly cost for purchasing a home from years one through six were $130,114 and for renting it was $86,510. The difference in the money spent between years one and six show prospective renters and buyers how much money one can save. The discrepancy is if a buyer had to...