Do you prefer to rent or buy a house to save?
The great debate between renting and buying is never resolved, it only dims until market forces and economic alter the equation and bring it to the foreground again. Although it highly dependent on local market conditions in many areas of the country there are clear advantages to buying a house.
While the population of the United States continues to grow, population tends to control housing demand and the likelihood that house prices are revalued. For those who see inflation as a factor in the coming years, the security of fixed payments for the standard mortgage for the next 15 to 30 years is a sobering thought when contrasted with possible rental fees that go along with other increments in the cost of living. But the debate is not clear due to the recent difficulties of housing. In fact, one could say that it has become more complicated.
Rent Or Buy A House
One of the most convincing arguments that advocates “buying” mention that thousands of dollars that do not return after spending on rent. Assume the cost of rent is $500 per month, in 30 years you will be paying $180,000 (without computing any inflation). That $180,000 will no return anyway. Though many people have to say that the fact that many cities get hit hard by tough economic times, and the former owners enter the rental market in large quantities, causing the relatively more expensive rent is added. At the same time, the housing crisis has made homeownership more affordable in most major cities.
For those who want the flexibility to pack up and move or do not expect to stay in a home for long term, renting certainly has its positive side. Proponents also note that the rental is necessary to have a stable home vision to cover all the costs of homeownership: the initial deposit, property taxes, closing costs, mortgage interest, repairs and other expenses. The house price for an area could be 15 to 20 times more than the annual rent. For example, in a neighborhood where the average rent for a house is $12,000 per year and the average cost is $180,000, buying a more expensive house puts you in a questionable situation.
Debate Between Renting Or Buying A Home
This discussion leads to the eternal question: it is an issue because as the economic situation changes, tilting the balance goes to one side or the other, like a balance after you add or remove weight? Or, is it in the center, like a philosophical debate, as it is an economic issue, the conclusions are provided in advance by individual perspective? Probably a bit of both. Therefore, to find out which option will save you more money, you need to calculate properly and then decide. For those who want a tool that compares renting and buying, use the calculator of The New York Times. Search the Internet for specific neighborhoods to compare the monthly cost of rent and the equivalent lists of homes for sale. Renting in communities where prices remain high (New York, Memphis, Kansas City, San Francisco, Fort Worth) versus buying in areas affected by the housing crisis (Miami, Las Vegas, Dallas, Miami, San Antonio, Atlanta) could be beneficial, because most of the people can’t afford to buy or they don’t find house on sale.
And no matter what decision you make at the end, you’ll want to take a look at the home insurer. An independent insurance agent at Regions Insurance Group will facilitate the process, saving you time and money, getting quotes and comparing him coverage from a variety of vendors. However, for those who are considering buying, questions are often simpler than any calculation for rental or purchase: what is best for me and my family at this time? If you are already in debt, you can’t really afford to buy a home. If you know that you can’t stay at that place for more than a couple of years, you won’t really fool yourself to buy a home.