Homework 4 Assignment
Why To Buy Your Home Instead of Renting

Now it is Your Time to Buy a Home

Your Home and Your Keys

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Benefits of Buying a Home

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According to the information from Advantages-of-Buying-over-Renting there are many benefits to buying a home instead of renting a home. Some of the benefits they mention on their website are: security, investment, tax advantage, saving money, and leverage.

Lets take a closer look at these advantages.

"SAFETY NET"

In the event that inflation runs wild, the homeowner has a safety net to help protect themselves from being left out in the street or put out in the streets since the homeowner is the only one who holds the keys to the home.

"INVESTMENT"

The individual that buys a home is really buying a lifetime investment. When the homeowner makes a monthly payment that payment increases the amount of the home that the owner has control over. Everytime a homeowner makes a home improvement that improvement increases the value of the home and that increases the value of the equity the homeowner has invested into the property. If the individual were just making monthly rent payments then there is nothing to show for the money paid out each month.

"TAX ADVANTAGE"

Every year tax time rolls around and these days we can use all the help we can get when it comes to paying taxes. Home ownership is a way to help. The homeowner can deduct the real estate property tax, some or all of the interest on the mortgage and the cost of insurance for the property. Plus, if you operate a home office from your home there may be another way the homeowner can take some deductions. You can't do this when your renting.

"SAVINGS"

When an individual first purchases a home the mortgage payment includes both interest and principle payments. In the beginning the borrower is paying mostly interest but as time passes the majority of the payment goes on the principle. This is where the saving part comes in at because by this time your payment will be mostly princple and that payment will be less than a rent payment, since market rent continues to increase.

"LEVERAGE"

A homeowner has leverage when a home they purchase with a small percentage down and the home appreciates in value by that same amount then the homeowner has increased their equity in the home by 100%. Plus, when an individual owns a home they have buying power because they can, although not reccommended, go out and get a loan if they are in a position of need. It is sometimes easier for a homeowner to get a loan when they own a home.

"LIBERTY"

A person that rents a home needs to ask the landlord for permission everytime they want to paint or plant a garden or put up a swimming pool. Whereas, a homeowner does not need to ask for permission from anyone. They can paint their walls any color they desire and have their entire yard as a garden if they wish. A homeowner has the freedom that a renter does not have when they own their home.

"STABILITY"

The homeowner has the same payment month after month, year after year, as long as they have a fixed rate mortgage. This gives the homeowner a sense of stability. They know what to expect every month. Whereas a renter, may not know what to expect from month to month especially if they are not under a fixed lease agreement. Every year the cost of living continues to go up and that means the cost of market rent as well. So, by owning a home the individual has a good feeling knowing their payment is not going to change regardless of how much the cost of living goes up.

Finally, "PRIDE"

There is nothing like the feeling you get when you own your home. It is your home. You worked hard to get it and now you can feel good that you have made a great accomplishment.

Benefits of Renting a Home Home For Rent

Take a look at the benefits of owning a home and compare that with the benefits of renting. Notice that there are more benefits to owning a home than there are renting a home. The information for the advantages of renting a home comes from the website Financial Highway.

"COST"

The cost to keep up a home can be expensive, especially if something major breaks down like the furnace. The cost to replace a furnace today ranges somewhere around $4,000 to $6,000 and sometimes that is with a used furnace. There are other expenses to take into consideration before you make the big decision to buy or rent. Expenses like maintenance, repair, property taxes, insurance, and utilities. All these expenses can add up into one big payment.

"FLEXIBILITY"

When you own your own home and you leave to go on vacation or somewhere for a while then you know that you still have a home hanging around out there just waiting for you to come back, not to mention you still have the financial responsibility of the property still hanging over your head. Whereas, if you rent then you can just give your thirty day notice and leave without ever needing to look back or go back. If you are the type of person who does not like being tied down in one place then home ownership may not be right for you.
To read more about this and to read more about financial freedom visit advantages-of-renting-a-home-instead-of-owning.

Is Buying a Home Better or Is Renting a Home Better

To decide whether buying a home is better than renting a home, you first must examine yourself to decide if you want to commit to a fifteen, twenty, or thirty year loan. That means you are committed to remaining in one place for a lengthy period of time. Then, you will want to examine your financial situation to see if this is the right time for you to buy a home. Everyone will make the best decision possible for their own situation and desires, so what may be right for one person may not be right for another. After comparing the benefits of both buying and renting, it appears that buying a home has more advantages and would be a better way of spending money. Yes it is an investment and yes it can have costs associated with it; but when you compare the two home ownership far out weighs renting anyday.

HAPPY HOUSE HUNTING!!

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