Renting versus Buying - Essay Example

a house and actually own it since it is a symbol of one’s identity and association with a place, but this is certainly not possible for everyone given the varying financial conditions and personal limitations. In fact, a vast majority of people in the modern societies have good and valid reasons to rent a house instead of buying one. Owning a house can be a risky business. It requires a lot of investment on the part of the owner and has very less to guarantee that the investment would ultimately prove worth it.

If one wants to make money out of the business of property, it is imperative that one waits for as long as the prices of the land and the property rise sufficiently up to promise a handsome profit. In a vast majority of cases, this happens over a long period of time and one has to wait for too long. It requires commitment and devotion. Owning a house is certainly not a wise decision to make if one can not somehow hold on to it for a considerable period of time. It becomes even more disastrous if one had originally decided to get it financed via a bank or any other source of sum.

For an individual to sell a house without having to wait for long, who initially made a down payment worth 10% of the total cost, it would be very costly since he/she would be required to part with a considerable percentage in the commissions of the real state. The closing costs to be offered to the seller would be in addition to that. An even lower amount of the down payment would result in an even greater loss to the seller. Such a blow to the seller is large enough to outshine any appreciation gains made over the property over the period of ownership.

renting in the present age given the high amount of uncertainty in the political environment all over the world in general and in the third world countries in particular. The emergence of war against the terrorism has destroyed the fundamental political, social and economic status of a lot of countries all over the world. This is