Amazing Kids! Magazine

Renting and Buying Homes

By Fatima

 

Major investments such as purchasing a home can be some of the most important, overwhelming, and rewarding experiences of one’s life. Although getting a home may feel like a far away investment that would be done later in life, depending on your family and life situation, you may need to start thinking about renting or buying a house as soon as 18! For example, not all universities provide housing for their students. In this case, you may have to seriously consider either joining a fraternity/sorority or investing in housing. As such, it is critical that you have a basic understanding of the process of getting housing from an early age.

Before purchasing or renting a home, the first thing you must do is evaluate your long-term plan. Do you plan on living in this house or apartment for 2 years? 5 years? 10? 30? The time you hope to stay in your new home will affect your home-buying process.

Once you have determined the long-term plans for your new home, you then need to consider whether or not you want to rent or buy the home. To rent a house or apartment is to pay a monthly amount to the owner of the house or apartment in exchange for staying there. Typically, you only rent an apartment or house if you plan to stay there for a few years or months. On the other hand, to buy a house is to become the owner of the house itself. Typically, you buy houses or apartments if you wish to stay there for a long time.

For example, say your friend has a doll that you love to play with. If you offer to pay your friend $1 in exchange for borrowing the doll for one day, you would be renting your friend’s doll. Notice how, even though you paid your friend some money to rent the doll, it still technically belongs to her. On the other hand, if you went to the store and paid for the exact same doll, you would be buying the doll. Even though you had to pay a little more money to purchase the doll from the store, it is now completely yours.

There are several advantages to renting a house instead of buying. For one, any issues with the home, such as leaky pipes or bad wiring, are typically paid for by the owner of the house. Additionally, because you are required to pay monthly amounts to the owner, renting a home can be cheaper than actually buying it! However, there are also some disadvantages to renting a house rather than buying it. Many people who rent homes are often not allowed by their landlord to own pets or redecorate their home. A landlord is the person who offered their home to be rented. These restrictions can make renting a home seem less pleasant.

On the other hand, there are also a few advantages to buying a home rather than renting one. For example, by becoming the owner of your own home, you do not need to worry about any rules or restrictions set by a landlord. The house is completely yours! Furthermore, buying a home also opens the opportunity to make money in the future. For example, say I bought a house 10 years ago for $100,000. Now let’s suppose that I renovated my house and it is now worth $150,000. If I sell my house, I will have made $50,000! However, keep in mind that this is not always the case. For example, let’s suppose that I bought a large apartment 5 years ago for $75,000. A few years later, I accidentally started a fire in my house that destroyed my kitchen, and now my apartment is worth $50,000. If I sell my apartment, I will have lost $25,000!

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