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09/07/2019

How many of you would rather buy a house than rent an apartment?

QUESTION
How many of you would rather buy a house than rent an apartment?
I am doing research for an essay and I would appreciate your information.
Thanks!

ANSWER
There are advantages and disadvantages to both.

In favor of buying, as many others have said, is the fact that you have more financial security and autonomy. One of the best things about owning is that you can do exactly what you want to your house without having to obtain the permission of a landlord. You can paint, decorate, and re-model to your heart’s content.

If you buy and own outright or finish paying off a mortgage, you don’t owe rent anymore. All you have to pay is property tax and maintenance, which is usually significantly less than the amount you’d pay for rent or mortgage. Also, if you buy and still have a mortgage, a portion of your monthly payment goes to equity, rather than to a landlord. That means that you’re essentially able to keep some of that money for yourself, based on the idea that you’ll own a little more of your house each month you pay your mortgage.

However, the value of your house isn’t really worth anything to you, except as a place to live until you sell it. A lot of people are “house poor,” which means they have a lot of money tied up in their house, but can’t take advantage of that money, because they live in the house. You won’t see any return on your investment until you sell the house.

I think the amount of time you plan to stay in the house determines whether or not it’s worth it to buy, There are some larger costs at the beginning, but they’re reduced the longer you stay. For example, there are costs associated with obtaining a mortgage from a bank. But, if you stay for a long time, rents go up with inflation but your monthly mortgage payment stays the same, so it becomes cheaper over time to own.

The benefits of renting include flexibility of relocating and ease of maintenance. If you want to move around a lot, renting is better. It makes no sense to buy a house for just a year. You’d be much better off renting for such a short period of time. Maybe you have a job that moves you around the country every little while. Maybe you just don’t like to stay in the same place too long. In these cases, I think renting is your best option.

Maintenance is also really easy as a renter. Got a problem? A/C doesn’t work? Dishwasher is broken? Roof is leaking? Call the landlord. You pay absolutely nothing (at least directly) for these costs. If you own your home, these issues become your financial problem.