Stop Renting And Start Buying Essay

793 words - 4 pages

Abstract
Many people in this country rent homes and apartments not realizing how much money they are just throwing away. All the renters are doing when they rent is pay the landlords mortgage for them so after the loan is paid off in 30 years, they make 100% profit and the renter is left with nothing but their personal belongings. By all means, purchase a home and stop renting.

Stop Throwing Your Money Away
Almost every week I tell people to buy their first home and build some equity in it for a few years so they can sell it and buy a more desirable home. After renting an apartment or home for a year, what do you have to show at the end of that year when you move out of that rental ...view middle of the document...

You are correct in saying that renting is cheaper than paying a mortgage but a few years down the road, you will more than likely have a nice amount of equity in your home and at that time you can turn around and sell the house and use the money you have in equity to make a down payment on a more desirable home. When you rent, you do not have the ability to think ahead at the day that the payments will stop but when you purchase a home, you know that in 30 years, the payments stop and you will own your home.
Virtually everyone who buys their first home has to stretch their budget. A home purchase not only creates a place to live but a forced savings account. I recall lying awake the first night in my current home, about 2 years ago, worrying about how I would make the mortgage payments. Somehow I made every payment, and today have built a substantial equity mostly due to the home’s appreciation in market value due to inflation. I crunched some numbers on how much a person wastes in 3, 5, and 10 years in rent and here are the results:
| |In 3 years |In 5 years |In 10 years |
|500/month |$18,000 |$30,000 |$60,000 |
|650/month ...

Other Essays Like Stop Renting and Start Buying

Will Home Buying Beat Renting? Essay

534 words - 3 pages Will buying beat renting? Falling home prices have sent many would-be buyers to the sidelines. If all goes well, record low interest rates and rising rents may soon prompt some of them to take a second look at buying. Unfortunately, that's a big "if," according to Paul Diggle, a housing economist at Capital Economics. Much of the decision to buy a house still depends on your personal finances and preferences, your career or family life, or

Is Renting an Apartment Is a Better Option Than Buying a House?

1378 words - 6 pages Is renting an apartment is a better option than buying a house? During the course of this essay, you the reader will be taken through a whirlwind of information that buying a home is a better choice that renting. One of the sources I will be using is a mortgage chart on Lending Tree. Com. In order to show that with proper credit and choosing the right loan for your circumstances, you will come out ahead of the game by purchasing a home

A New House Decision

1911 words - 8 pages has finally come for me to look to buying a house and stop renting an apartment. With having a new baby on the way, it became necessary to buy a house in order to make room for a new baby while ensuring I move to an area that provides good school districts to include an overall safe environment as well. I factor in the amount of debt to income ratio I have, the amount of money I have in savings, job stability with my current employer, and the

Black America

686 words - 3 pages employees employed at their companies and avoid at all costs to stop layoffs from happening, one company at a time. Why is it an assumption that people should purchase a home instead of renting? By purchasing a home, we are presumed to feel a sense of accomplishment. Accomplishment because we now own instead of rent, but what are the benefits of owning? When you own a home, you have to assure the upkeep of your home. When something is broken, you

Xeco 212 Week Two Assignment

740 words - 3 pages costs of the housing market which will cause the demand for homes to go down again, making companies that supply building materials and workers to decrease making the supply for homes being built decrease until the cycle starts again. A substitute to buying a home would be to rent. Renting a home is cheaper than buying a home because the renter only has to pay for the cost of rent, any utilities not included, and repairs for damages that they have

Finanance

1043 words - 5 pages to the idea of internet services, and the convenient of acquiring home entertainment is a must. 1. Consumer Reports magazine: March 2009 http://www.consumerreports.org/cro/magazine-archive/march-2009/money/movies-at-home/overview/movies-at-home-ov.htm 2. How to Start Your Own Movie Renting Store Like Netflix by Amelia Jenkins, Demand Media http://smallbusiness.chron.com/start-own-movie-renting-store-like-netflix-15316.html 3. Video Tape Rental by HighBeam Business http://business.highbeam.com/industry-reports/personal/video-tape-rental

Business Market

1250 words - 5 pages establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Business Market versus Consumer Market Business Markets comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. The major industries making up the business market are agriculture, forestry

Economics Final

1888 words - 8 pages things with my friends and family and less time doing repairs and routine maintenance. References Associated Press. (2009). 5 costs of buying a home you didn’t consider. Retrieved from http://www.nbcnews.com/id/30608283/ns/business-personal_finance/#.URglHWeLvE4 Financial Planning Association. (2010). The Economics of Renting vs. Buying. Retrieved from http://www.fpanet.org

External Environment Analysis for Redbox

1411 words - 6 pages become a more efficient organization. Blockbuster has also plans to start its own DVD vending machines and due to its brand recognition can be a direct competitor to Redbox’s kiosks. Also, bigger players like Apple and Google are planning to enter this industry using internet to deliver the product. Substitutes and Complements Movie theaters can be considered as a substitute for watching movies in a theater instead of renting at home. Also

Summary Of Major Risks And Factors That Blockbuster Has Faced And Will Face In The Future

657 words - 3 pages will have a hard time matching Wal-Mart's prices. Because of that, it appears much of the chain's new strategy will have to rest on their belief that some customers will shift back from buying to renting DVDs. Consumers really do watch some of their old DVDs over and over. But some viewers can't help but wonder whether that $18 investment in some movies was really a smart move after all. Over time, Blockbuster will have to

Supply and Demand Simulation

901 words - 4 pages decrease prices because of a surplus of supply. However, because demand and supply decreased due to a change in preference and loss of rental units, both curves moved towards the right. This move means that the demand decreased as well as the supply, and to keep the equilibrium of rental properties, GoodLife would have to decrease their prices in order to keep the consumer renting apartments instead of buying a condominium. This is actually

Related Papers

Home Ownership Essay

859 words - 4 pages high, that will be no longer affordable. But if you own your house, you would not have to worry about losing connections with your close neighbors, because you would not have to move anywhere else. Buying the right house in the right neighborhood gives you less worry about your children going outside to play. While living at your home in about a year or more, you start to build lots of trust with your neighbors. But if you are renting, and

Not A Part Of The Plan

529 words - 3 pages maintenance which includes lawn, any minor damages that may occur like leaks or broken cabinets etc., whereas renting a home there is simply the monthly rent and possibly utility bills, some locations include that into the monthly rent. Down payments also come into factor in renting versus buying. When renting usually one is asked to pay the first and last months rent which runs about 10% of the total cost of the rent where as, buying is 20% of the

To Rent Or Buy Essay

618 words - 3 pages There are many things that factor in when deciding if renting an apartment or buying a house is the best option for you. Weighing the pros and cons of both can ultimately help you make the best decision. When buying a house you really have to do your reasearch. Then when you finally find the one you like there is a whole process you have to go through. You have to put in an offer at what you think the house is worth. If the owners come back with

Xacc Final Exam Essay

543 words - 3 pages going to keep coming up with the mortgage payments? There are many different reasons why renting an apartment right now is much better than buying a house. For one thing, it is cheaper to rent an apartment in the long run. If you are renting an apartment for $700 a month for a three bedroom, that same home is going to cost you anywhere from $1,000 to $1,500 a month in mortgage, factoring in insurance and taxes. If you really want to invest in