Buying a home vs renting a home Research Paper Example | Topics and Well Written Essays - 2500 words

Buying a home vs renting a home - Research Paper Example Whether one decides to purchase or rent a place, a person has to be very smart to prevent any losses. However, if a person intends to stay for long, buying a house proves to be cheaper and better compared to renting a house. The issue of buying or renting a house is complex and there are many factors which affect ones choice and buying is a suitable option in cases where an individual wishes to stay for a long period at one place. Analyzing one’s current financial position and future prospects is perhaps the most important factor that impacts the decision of buying or renting a house. A person needs to think and act wisely before coming up with a conclusion. He must also know that whatever his decision is he should keep in mind the size of the place and the rent or cost which is asked for it. So, if he is looking forward to buying a house he will have to take mortgage into account and other expenditures which accompany it. When thinking about buying a place he should know that he is building equity. Furthermore, one should know what to do when property prices rise and when they lower. Hence, an awareness of the prevalent market rate is an excellent idea. And most importantly whether one rents or buys a place, he needs to keep in mind his financial situation and then make his decision (Quealy, and Archie np). Furthermore, other factors affecting the decision must also be considered. Some of these factors include how quickly the prices of houses rise and how fast the rents are going to rise in the future. Also one’s decision depends on how long he plans to stay in the house which he is willing to rent out. In order to make a decision, quite a lot depends on the customer comparing the prices of the rent and that of the cost of actually buying the house. Ideally, if he intends to stay in the same house for more than 6 years, it is advisable to buy a property instead of