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Real estate is defined as property which is immovable in nature and comprises of land and buildings on it (Soanes 1221). Real estate business has been boosted by the high demand of houses and land. This property can either be lent out or completely sold out to a person. It is better for an individual to purchase fully a house than rent due to the many advantages of house ownership.
Purchasing a house as opposed to renting is an investment as the house is a lifetime asset to the owner. A house purchase can be made fully at once by a lump sum or using a mortgage. Mortgaged house is paid per month until the mortgage amount is over implying that each monthly payment for the house increases the value of the house owned. House value rises over time and all the improvements made to the house will only appreciate its value which increases owner’s net assets. If an individual rent a house, the monthly house rent does not contribute to any increase in the equity of the owner’s assets. Therefore, renting is an expense to the tenant and the money used for settling rent bill can be used to pay a mortgage for a house.
A house-owner has the freedom of making changes and conducting maintenances to the house without getting permission. This gives the owner liberty to establish structures, for instance a swimming pool and plant gardens within the house compound according to the owner’s taste and preference. The choices of paint color on the house are made by the house-owner and tenants have no say about it. Tenants can only be able to make any changes in the house after seeking permission from the owner limiting their freedom. In order to enjoy full liberty of the house and its compound, it would be better to purchase the house than rent.
Owning a house enhances owners in stabilizing payments for a fixed interest mortgage since payment expenses for the house are same each month. The owner can make future prospects since the payments to be paid for the house are known. In a rental house, there is the uncertainty of the amount of rent to be paid in the future and thus making the renter’s payments unstable (“Owning vs. Renting” 1). A purchased house saves the owner from uncertainties caused by fluctuation of house rents as a result of inflation.
Purchasing a house is a form of saving to the purchaser, because more money is paid to cater for the principle amount of the cost of purchase. Fluctuating market prices of rent lead to hikes in the rent prices over the years, making renting more costly in the long run than purchasing a house. Therefore, it is better to purchase a house for the money used is a saving since it is an asset for the owner while continuous payment of rent is a liability for the renter. Renting a house is an expense and thus an individual should consider saving the expenses through purchasing a house.
Having the security of a place to live even in financial difficulties provides the owner a pride of accomplishment. Renting a home does not provide that security as the leaser can decide to demolish the house causing inconveniences. Also a tenant can be unable to renew a house lease as a result of uncertainties. Due to the merits accompanied to purchase of a house as opposed to renting a house, it is better to purchase a house than rent.
“Owning vs. Renting.” Owning vs. Renting. Web. 16 October 2014
Soanes, Catherine. The Concise Oxford English Dictionary. 11th ed. Oxford UP, 2008. Print.