Renting Versus Buying

Renting an Apartment versus Buying a Home
Deidra Keen
COM 156
October 27, 2010
Greg Singleton

Renting an Apartment versus Buying a Home
    Owning a home is the “American dream and some home owners are slowly realizing that it is more work than they bargained for and their dream is slipping through their fingers. Buying a home is a huge financial responsibility, and investment, and many people do not take into consideration just how much work it is to obtain and maintain a home. The process of buying a home is very drawn out and cannot be done in a matter of a couple weeks.
    Having a down payment should be taken into consideration first. According to Sykes and Curry (August, 2007) “Save at least three months' worth of payment, interest, taxes, and insurance (PITI) before you buy. It is important to remember, however, that the costs of buying a home include more than just PITI. Figure into your budget cash reserves for moving, emergencies, unforeseen repairs, association dues, maintenance, and upgrades. In addition, closing costs are typically 3% to 5% of the purchase price. And usually you'll need a down payment of 5% to 20%” (p.82).
    Depending on the company that the house is through will depend on how much of a down payment that is needed. They vary between five and twenty percent of the purchase price of the home. Then the research begins to find a new dwelling. This may take weeks or even months to complete. Once a property has been chosen that fits your budget and lifestyle, contact the realtor, see the property and, make an offer. The offered made could be denied, wasting more time, and it is not uncommon for financing to fall through. When this happens another financial institution needs to be sought out to lend the money to purchase the home.
    A substantial amount of money...