Create a 4 pages page paper that discusses renting is better than buying. Renting an apartment remains quite economical as compared to buying one. With the passage of time, renting proves to be cheape

Create a 4 pages page paper that discusses renting is better than buying. Renting an apartment remains quite economical as compared to buying one. With the passage of time, renting proves to be cheaper than buying an apartment. It is always advisable to make a cost-benefit analysis while deciding whether to buy or rent a home (Vij). Where renting a house costs an individual as much as $500 on the average, the same house may cost an individual between $1000 and $2000 per month in the form of mortgage that further gets factored to accommodate tax and insurance. Also, in the recent years, “rents have barely budged while house prices in New York, Washington, Los Angeles and elsewhere have doubled, renting has become a surprisingly smart option for many people who never would have considered it before” (Leonhardt). Whenever an individual has enough money to invest, it is advisable to estimate the difference of the mortgage payment and the rent, and invest that sum into the stock market.

Benefits of renting:

Acquiring the loan for constructing a house is quite a lengthy and tiresome process. An individual is supposed to possess excellent credit and a considerable sum for making down payment. Good interest rate cannot be gained without a good investment sum. Buying a home requires an individual to owe the lender money for many years that follow. Renting the house provides the individual with the leverage to pay as long as he/she lives in it, and later decide as per convenience. When an individual owns a home, he/she essentially becomes responsible for all matters that concern the accommodation’s maintenance and appropriate functionality.