Pursasive essay on buying versus renting Example | Topics and Well Written Essays - 750 words

Pursasive on buying versus renting - Essay Example This is done to take the most appropriate decision according to current financial situation of the world. Economic decisions are extremely important owing to the inflation that has taken place in the world. This results in the want for wise financial choices to prevent the losses that may result. The issue of buying versus renting is an important economic matter. It is a decision that affects the economic condition of an individual for a long time and hence a very careful decision on this subject is required. Renting and buying have their own positive as well as negative points and the final choice needs to be made according to the needs of the individual considering both the present and the future benefits. Buying is basically the purchasing of property where the individual tends to enjoy all rights over his property. The maintenance and every important decision regarding the property are taken by the buyer. The buying may be done by the payment of full amount or it may be done on m ortgage where installments are paid every month. On the other hand, renting is basically a deal with a landlord to use their property on fixed terms and conditions and vital matters lie in the hands of the landlord. A fixed payment is paid every month in the form of rent. According to the analysis performed by the New York Times and which was updated on the eleventh of May 2011, the current global financial situation is better for the option of buying rather than renting. This is particularly true for people who wish to use their property for periods of greater than half a year. The overall financial benefit would be that of $10460 over the six month period (Conner 2010; Quealy et al 2011). Buying makes a person the legal owner of his property. It brings with it a sense of satisfaction that the house that the person is residing in truly belongs to him. He cannot be asked to leave by the landlord as is the case with renting. A person can make any alterations and changes in his proper ty as per his will, without any interference by other people. Buying provides other financial benefits as well. A person receives relaxations in the federal tax payments owing to the reductions of the property taxes as well as the interest of mortgage. With the rising inflation, the cost of living keeps on increasing. The amount of rent also keeps on rising. On the other hand, the installments of mortgage stay fixed and do not increase according to this rule. Therefore, the stability in the cost of living is advantageous for the buyers. During the time period that the person pays the lease, he can also use his property for living and utilize it for any other purpose. This is a benefit as a person basically invests for his own comfort and his monthly payment is not wasted but is rather utilized towards the payment of his property. Furthermore, the property values keep on rising with increasing time. Thus, the lease that the person is paying is basically a form of investment and he wo uld not go in loss. This is because sale of the property after a few years would yield more financial benefit (Conner 2010). According to an economic analyst, Andres Carbacho-Burgos, â€Å"A year ago, it was a better deal to rent. Now you have a significant number of areas, especially those hit the hardest by the correction, where, when you compare prices to rents, you'd be led to believe it's a good time to buy." He provided this analysis in the year 2009 by considering the economic balance between the price of renting and buying in the United States. Renting is an option that may be considered for people who wi