Home Ownership vs. Renting Essay

689 Words Apr 3rd, 2011 3 Pages
Home Ownership Verses Renting It is the American Dream to own a home, and it is influenced heavily in today’s society. Commercials for home furniture to home makeover ideas inspire one’s imagination and creativity to run wild and become over ambitious. It seems to be the classic trademark of the American Dream, to be independent and to have a sense of belonging and possession, to do with as one would please. However, what are the viable and cost effective options between home ownership and renting? It seems as though when analyzed that there are more differences than there are truly similarities. Similarly, in both home ownership and renting, one wants a warm, inviting, comfortable, and safe home, a place to either start a new family or …show more content…
It is not unusual to see a lower mortgage rate, but it should be noted that the total cost is spread over a financing term, normally thirty years, with interest on top. Monthly rental fees are usually all of the owners combined expenses, such as mortgage and interest rate, HOA fee, home owners insurance, and property tax. After reviewing this, one might say a renter does not benefit as all the cost are passed onto the renter. However, most homes will rent for market value which normally tends to be lower than the property owners actual cost. This is where a renter benefits as most property owners just break even or end up paying out of pocket on top of the monthly rent. Many unique characteristics appear from a home ownership or rental point of view that can effect ones decision. Majority of situations, owners make the rules for the property with renters having to strictly abide by them. For example, renters whom have pets can make or break a rental agreement which are a decision by the property owner to allow with little say by the renter. In most rental properties, the home owner will be solely responsible for maintenance request on the property, and it can be challenging as a renter to get problems addressed in a timely manner. A major aspect to consider is the customization of a rental property since most

owners are reluctant to spend extra money to meet and satisfy the particular needs of a renter. In nearly all instances, owners have the upper hand and the

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