Renting vs Buying

The decision between purchasing a home, versus renting an apartment, is a major decision and should not be make without careful thought and consideration. To make this decision, one should make a list of pros and cons. The list should include many items, both in favor of, and against both sides of the issue. One should consider every aspect, every situation that could arise from each point, and compute those items into a rational decision.

Renting an apartment is the venue most people start with when moving out on their own for the first time. Renting is usually cheaper up front than buying, and has a bonus of not keeping people tied down to one particular place for a long period. Most rental contracts or leases are short-term, usually six months to one year, and they afford people the luxury of terminating the agreement after it ends. Renting also allows the tenants to keep from having to handle housing emergencies, such as a leaking roof, busted water pipe, or the water heater going out. These things are very expensive to fix, especially if the tenant hires a professional service to fix them. By renting, the tenants are not responsible for the cost of the professional service. The landlord is responsible for fixing them, and the rent remains the same regardless of the cost. Renting also makes it easier to budget the finances. The rental amount is the same from month to month throughout the term of the contract. The tenants know exactly what they are expected to pay; they do not pay property taxes or insurance on the property. They just pay the rent and the utilities if they are not included in the rent.

Buying a home offers a few incentives as well. People purchase a home for a certain amount of money, and if they are careful about how they treat the home they can usually sell it later at a profit if they choose. Property values often rise over time. They usually have to provide a down payment, and borrow the remainder from a bank or credit...