Renting Apartment an Option Buying a House.

Renting apartment an option buying a house. I opinion sway readers buying a home renting apartment. Cite work pages 1000 words .

Renting vs. buying

The events which have marked the real estate market throughout the past recent years have generated among the strongest impacts ever. In this order of ideas, the internationalized financial crisis commenced within the United States real estate sector soon spread out through all global regions. At the level of the real estate industry -- booming at that time -- a massive deflation was witnessed. The access to loans was restricted and the people were no longer willing or able to purchase real estate properties. Additionally, as a result of the crisis and the subsequent job loss, previous property buyers became unable to honor their mortgage payments. The prices of the real estate properties as such quickly devalued and they have yet to reach their pre-2008 values.

Thesis statement

In this growingly complex context, a question remerges relative to the individual decision one should make regarding the purchase of a house or the rental of an apartment. This decision is subjected to individual as well as group features. At the level of the individual for instance, the decision could be based on financial and other personal constraints. At the level of the group nevertheless, the decision would be impacted by group features. The most relevant example in this sense is represented by the attitudes toward real estate properties observed in the United States and those in the United Kingdom. In this order of ideas, where the Americans are advocates of renting, the British reveal a strong sense of possession and they will often decide in favor of purchasing rather than renting.

Most people now believe that it is safer and more prudential to rent an apartment, and as such to become subjected to lower risks. Despite these opinions nevertheless, it is the personal judgment of this writer that the purchase of a house is a better decision than the rental of an apartment. And this is due to a wide array of reasons, which would be presented throughout the following section.

3. Buying vs. renting

As it has been mentioned throughout the previous section, the personal belief of this writer is that buying a house -- or any real estate property for the matter -- is a sounder investment decision than that of renting the respective property. The lines below reveal the arguments in favor of this opinion:

a) Long-term investment

The purchase of a house is a highly risky and complex endeavor, which often forces the buyer to contract long-term mortgages which expand throughout the duration of several decades. Rental apartments however seem more flexible and easy to manage, but in the long-term, they create loss. In this order of ideas, despite the hurdles involved with the purchase of a real estate property, this decision represents a long-term investment. The monthly payments made to the bank ensure that the buyer is in fact the owner of the property. And after the decades-long duration of the mortgage, the individual will be the owner of residential capital.

In the case of the rented apartment however, the individual also makes monthly payments, but to the owner of the apartment. And after the same number of decades as in the previous example, the tenant could find himself evicted from the apartment. He will have spent all that money on the rent, but he will not have his own property.

As a general financial consideration, the investment in a house becomes superior to renting in an estimated period of six years (Quealy and Tse, 2010). Additionally, it is also important to recognize that the rent -- which can be slighter than the mortgage payment -- will often go up as the prices are indexed by the owners.

b) Safety

In the case of a rented apartment, this can always fall under the incidence of various problems which oblige the tenant to move out. Examples in this sense might include the decision of the owner to no longer rent the apartment or city hall decisions to demolish the building and construct something else on the premises.

The decisions of the city hall could also force the owner of a house to vacate the premises, but such situations are significantly rarer. Additionally, when an owner is asked to leave his house for city hall purposes, he/she is usually compensated for the loss of the property. This is not however the case with tenants.

c) Freedom

At this level, the benefit of having freedom refers to the fact that the owner of the real estate property can modify the respective property however he/she desires. In the case of a rental however, the tenants cannot customize the house or the flat to make them their own. This continually indicates a sense of not belonging, whereas in the case of the purchased home, the owners can modify it, customize it and transform it into a home.

This sense of freedom is also more obvious in the case of land purchase and house building. This situation permits the owner to actually construct the house as the needs of his life indicate. The rented apartment does not offer any of these advantages.

d) House vs. apartment

However exceptions exist to this, renting is generally centered on apartments, whereas purchasing is often centered on houses. The very distinction between the two types of properties is sufficient to convince the individual that a house is a better decision.

In this order of ideas, while living in an apartment can be noisy, living in a house restricts the number of neighbors, and as such the owner is less likely to be impacted by the noises they make, as well as by their problems. Then, living in an apartment often means a life in the city, filled with noise and pollution. In the case of a house however, the location is often in the suburbs, which are less noisy and cleaner, including at an environmental level. Also, cities are more prone to crime and violence, whereas suburbs are safer regions.