Deciding whether to buy or rent - Research Paper Example

As the number of years that a property will be used increases, the advantages of buying also increase. Flexibility is another issue to consider when deciding to rent or to buy. For instance, if one wants an asset that he can leave and go for another option, renting would be the best choice for such a person. Renting means that the person is only attached to the house for only one month at a time and this means that the person can move out if and when they want. This is unlike buying, because once a property is bought, disposing the property can be a very difficult process and in the case where the owner wants to move to a different option, the owner may have to wait for months or even years before he is able to dispose the property.

The other factor to consider when deciding to buy or to rent is the cost of maintenance. As Jared (20) asserts, when a property is bought, the owner is responsible for all the maintenance costs that the property will require. On the other hand, renting relieves the burden of any costs associated with maintenance of the property. For instance, if a home needs repair, the owner of the house is the one who is going to pay the cost of repair. If one intends to avoid the high costs of repairing and maintaining the property, the person may need to consider renting rather than buying the property.

In cases of expensive assets, the other maintenance costs that the owner of the property will have to incur will be the insurance costs, which will be used to insure the property against any form of loss. Once a property is bought, any risk or risks associated with the property will have to be borne by the owner (William 12). Renting on the other hand means that the person does not own the risk, and that if the risk materializes, the person will not have to bear the risk. This is very important for a person seeking to own or rent a