Buying Versus Renting a Home

     Are you debating on whether buying or renting a home? Well, I believe buying a home is the better route to take because I feel a person saves money, builds personal credit, and gains the sense of ownership when one buys a home. However, buying a home depends on the person and their situation. Overall, there are many factors to take into consideration on whether to buy or to rent a home.  The “New York Times” provides a calculator to calculate buying costs and renting costs.  It also presents a graph showing how much money one would save by simply buying a house and living there for at least five years. This calculator will also show the long-term savings when it comes to buying a house instead of renting.

     Even though I believe buying is considerably better than renting, there are some things to consider when making this decision.  Some critical things to think about before determining a final decision would be the maintenance required when buying a home, credit score, and job instability or the possibility of relocation.  About.com  states “Not everyone should buy a home.” This website provides and in-depth explanation of some of the reasons to not buy a home.

     On the other hand, a person who is buying a house, gains equity and the sense of personal ownership because any improvements made to the home increases the value of the home.  Also, when the loan is paid off the house will actually be owned by the buyer.  Buying a house also drastically improves a person’s credit score.  If one pays their mortgage payment on time for six to twelve months, their credit score will increase as much as 100 points because buying a home shows stability and responsibility.  When it comes to renting a house, a person is pretty much throwing their money down the drain.  A person will pay a monthly rent amount but they never gain anything.  The landlord will provide any maintenance required for the home, but ultimately the landlord owns the home.  I have rented a house and I do not like all the rules set in place by the landlord.  I was unable to paint any of the rooms, put holes in the wall for hanging pictures, or make any sort of improvement to the house.  Buying enables more freedom.

        All in all, I feel the advantages of buying a home outweigh the advantages of renting a home.  I believe stability, saving money, building personal credit, and gaining ownership of something are the greatest aspects of buying a home and the best for me and my family. We do not plan on moving anytime soon, but if we ever decided to move, at least we will have an asset to sell.  If one decides to move after renting a house, they basically leave empty-handed. I would strongly encourage all people to buy a home instead of renting one.