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Buying a house is commonly a huge part of people dream. However, Choosing to buy or rent depends on many aspects, such as Financial Health, Lifestyle, Life goals,.. Which one is the best fit for you?

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1. What did you learn about your topic that surprised you the most?
- I was surprised when it came to my knowledge of how interesting "renting and buying houses" was. I had never known that there were certain benefits when buying a house because it's the common sense how overwhelming it is when it comes to buying a house. it's a big achievement, and it needs to be taken seriously. From what I learned in the topic, buying a house seems very easy, and it has many benefits for the owner compared with renting. Depending on the situation of any individual, renting or owning a house can be more beneficial than the other. From my own general perspective, both sides are very attractive and interesting to me, and I'll consider both throughout my lifetime.
2. Provide a real-life example of how this topic is relevant or interesting.
-it's always hard to answer such a simple question because it requires the individual to analyze everything in their life to come to a conclusion about whether or not they should rent or buy.
3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?
- The important thing to pass on is that we understand what we need and have to find the best fit for us.

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I picked this picture because if you are planning to buy a house. You need to calculate your mortgage payment as well as your interest rate. There are many mortgage payment websites that we can use.

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I chose this picture to indicate the advantages, benefits between buying and renting a house.

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For a number of reasons, the essay makes the case that renting is occasionally preferable to purchasing a home. These factors include movement freedom, avoiding homeownership-related fees and hazards, including property taxes, repairs, and maintenance, and the potential to spend the money saved by not purchasing a home on other options. However, the essay makes the case that renting can be a better choice for people who aren't ready to settle down or would rather use their money in other ways.

The reason why I chose this website/article is that it is one of the most basic knowledge as well as a reason we should think about before finding a place to settle in, and renting is the best choice because of its safety either in finance and for yourself.

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Owning a home may be a lifelong goal for many Americans but that doesn't mean it's for everyone. Homeownership rates are currently high in the U.S., but this hasn't always been the case. Families have historically needed to either build their own homes or rent a home from someone else. Although it may not be ideal, renting does have its advantages, too. For some people renting might make more sense for their financial circumstances. Below, we've listed 10 of the main advantages of renting instead of buying a home.

1) No Maintenance Costs or Repair Bills

One of the benefits of renting a home is that there are no maintenance costs or repair bills. This means that when you rent a property, your landlord assumes full responsibility for all maintenance, improvement, and repairs. If an appliance stops working or your roof starts to leak, you call the landlord, who is required to fix or replace it.

Homeowners, on the other hand, are responsible for all home repair, maintenance, and renovation costs. Depending on the nature of the task (and whether multiple jobs pop up at the same time), it can get quite pricey.

2) Access to Amenities

Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness center come standard at many midscale to upscale apartment complexes with no additional charge to tenants.

If a homeowner wanted to have access to these amenities, they would likely have to spend thousands of dollars for installation and maintenance. Condo owners aren't exempt from these costs either. These expenses are rolled into their homeowners association (HOA) fees, which are due on a monthly basis.

3) No Real Estate Taxes

One of the major benefits of renting versus owning is that renters don't have to pay property taxes. Real estate taxes can be a hefty burden for homeowners and vary by county. In some areas, the costs associated with property taxes can amount to thousands of dollars each year.

Although property tax calculations can be complex, they are determined based on the estimated property value of the house and the amount of land on which it's built. With new constructions getting larger and larger, property taxes can be a significant financial burden to homeowners.

4) No Down Payment

Another area where renters have a better financial deal is the up-front cost. Renters generally have to pay a security deposit that is equal to one month's rent. And that's usually all. This deposit is theoretically returned to them when they move out, provided they haven't damaged the rental property.

When purchasing a home with a mortgage, you're required to have a sizable down payment-typically around 20% of the property's value. Of course, that down payment results in having equity in the home, which only increases as the mortgage is gradually paid off. And once you own a home free and clear, you have a valuable investment that renters never attain.

Still, the amount needed for a down payment on a home is significantly more than a rental security deposit. A 20% down payment on a house with a market value of $200,000 is $40,000. The average apartment rental in Manhattan, one of the most expensive places to live in the U.S., was $4,419 in February 2022. Those who don't have money for a down payment are better off renting.

5) More Flexibility As to Where to Live

Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. Living in an expensive city such as New York may be out of reach for most home buyers, but it is entirely possible for renters. Although rents can be high in areas where home values are also high, renters are more apt to find an affordable monthly payment than home buyers.

6) Few Concerns About Decreasing Property Value

Property values go up and down. While this may affect homeowners in a big way, it affects renters substantially less, if at all. Your home value can impact the amount of property taxes you pay and the amount of your mortgage. In a rocky housing market, renters may not be as adversely affected as homeowners.

7) Flexibility to Downsize

Renters have the option to downsize to more affordable living spaces at the end of their lease. This kind of flexibility is especially important for retirees who want a less costly, smaller alternative that matches their budget.

It's much more difficult to break free of an expensive house because of the fees involved with buying and selling a home. Also, if a homeowner has invested a significant amount of money in renovations, the selling price might not cover these costs, leaving them unable to afford to sell and move.

8) Fixed Rent Amount

The amount you pay for rent is fixed for the span of the lease agreement. While landlords can raise the rent with notice, you can budget more efficiently, because you know the amount of rent you are required to pay.

The same applies to homeowners with fixed-rate mortgages, which also allow for efficient budgeting. But adjustable-rate mortgages (ARMs) can fluctuate, often resulting in rising mortgage payments due to higher interest charges. Property taxes are another variable that can increase costs for homeowners but don't affect renters.

9) Lower Insurance Costs

While homeowners need to maintain a homeowners insurance policy, the equivalent for renters is a renter's insurance policy. This kind of policy is much cheaper and covers nearly everything owned, including furniture, computers, and valuables. The average cost of renter's insurance is $179 per year, while the average insurance policy for a homeowner costs $1,249 per year, according to a study by the Insurance Information Institute.

10) Lower Utility Costs

Although homes can vary in size, they are typically larger than rental apartments. As a result, they are more costly to heat and also can have higher electric bills. Rental properties typically have a more compact and efficient floor plan, making them more affordable to heat and power than many houses.

The Bottom Line

Owning a home can be beneficial for homeowners over the long run due to the amount of equity they acquire in their home. Renters have nothing tangible to show for years of rental payments. However, for those who want to avoid the hassles associated with homeownership, the costs of upkeep, and property taxes, renting might be a better option. Of course, it depends on an individual's lifestyle, financial situation, what they can afford to pay in monthly rent, and whether they're working or in retirement.

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10 Reasons Why Renting Could Be Better Than Buying

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Owning a home isn't right for everyone. Renting is better than buying for some people because it makes more financial sense.

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Eight benefits of homeownership are outlined in the essay. Building equity and long-term wealth, stability and security, tax advantages, the opportunity to customize and renovate, and the possibility of rental income are a few of these factors. The article also emphasizes how homeownership may provide one with a sense of belonging and pride and more privacy and control over their living environment. The essay advises careful thought and planning before buying but also acknowledges the time and financial responsibilities required in home ownership.
I chose this website/article because we need to know the reason why people decide to buy or own a house though renting is more like a great deal that fit everyone, like in website #1

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There are many reasons to buy a home, especially for first-time home buyers, beyond tax deductions. Here are eight great benefits of owning a home.

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This video was chosen because I believe it truly reflects my current scenario as a college student. College students represent the next generation, and because they adapt and change quickly, changing habitats play a significant role in evolution.
The movie demonstrates the flexibility of renting in that you can relocate from one location to another and then move again if you desire a different perspective or other amenities later on. Renting also allows you to push yourself beyond of your comfort zone because you will be living somewhere far away from family, alone, and with the ability to visit new locations.

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MOVING VLOG ep. 2 | flying to seattle, apt first glance, building furniture & exploring the city

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1. Laid off rising
2. Interest Rate continue to risng

This video was chosen because it clearly demonstrates the true current state of our economy, which is unemployment and inflation. The figures in the movie reveal that job layoffs are continuing and will rise day by day, relating to inflation, which explains that if your employment cannot be secured and interest rates rise, the probability of house foreclosure is something that can be foreseen.

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UK Faces 500,000 Job Losses as BOE Fights Inflation

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1. Pride of ownership
2. Stability : Flexibility of customization living space

I choose this video for a variety of reasons, including the fact that it clearly demonstrates the numerous advantages of home ownership. The first reason I choose this video is that it clearly demonstrates the stability of home ownership. When you own a home, you get an emotional experience known as pride of ownership. Another reason I choose this video is that when you rent a house, you have little control over it and how long you live there. You could be evicted by your landlord at any time. Having a home also allows you to completely personalize your living environment without seeking permission from anyone.

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Total Home Renovation in Only FOUR WEEKS | Help I Wrecked My House | HGTV

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For those who are prepared to purchase a home, the article offers ten stages. These actions entail evaluating your financial condition, obtaining mortgage pre-approval, figuring out your needs and budget, dealing with a real estate agent, and having a home inspection. Making an offer, obtaining insurance, concluding the transaction, and managing your house are further processes. The essay stresses the significance of planning your finances and conducting thorough research before making any significant decisions in the home-buying process.

The purpose of this article/website is to inform those considering home purchases about the steps they should take to get ready and minimize risk.

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Are you ready to buy a house? How much can you afford? Answering that second question may not be so easy. Before you snap up that seemingly great buy on a home, learn how to analyze what "affordability" means. You'll need to consider various factors ranging from the debt-to-income (DTI) ratio to mortgage rates.

Understand Your Debt-to-Income Ratio First

The first, and most obvious, decision point involves money. If you have sufficient means to purchase a house for cash, then you certainly can afford to buy one now. Even if you can't pay in cash, most experts would agree that you can afford the purchase if you can qualify for a mortgage on a new home. But how much of a mortgage can you afford?

The 43% debt-to-income (DTI) ratio standard is generally used by the Federal Housing Administration (FHA) as a guideline for approving mortgages. This ratio is used to determine if the borrower can make their payments each month. Some lenders may be more lenient or more rigid, depending on the real estate market and general economic conditions.

A 43% DTI means all your regular debt payments, plus your housing-related expenses-mortgage, mortgage insurance, homeowner's association (HOA) fees, property tax, homeowner's insurance, etc.-shouldn't equal more than 43% of your monthly gross income.﻿﻿

For example, if your monthly gross income is $4,000, you multiply this number by 0.43 to get $1,720, which is the total you should spend on debt payments. Now, let's say you already have these monthly obligations: Minimum credit card payments of $120, a car loan payment of $240, and student loan payments of $120-a total of $480. That means theoretically you can afford up to $1,240 per month in additional debt for a mortgage, and still be within the maximum DTI. Of course, less debt is always better.

What Mortgage Lenders Want

You also need to consider the front-end debt-to-income ratio, which calculates your income vis-à-vis the monthly debt you would incur from housing expenses alone, such as mortgage payments and mortgage insurance.

Usually, lenders like that ratio to be no more than 28%. For example, if your gross income is $4,000 per month, you would have trouble getting approved for $1,720 in monthly housing expenses even if you have no other obligations. For a front-end DTI of 28%, your housing costs should be under $1,120.﻿﻿

Why wouldn't you be able to use your full debt-to-income ratio if you don't have other debt? Basically, because lenders don't like you living on the edge. Financial misfortunes happen-you lose your job, your car gets totaled, a medical disability prevents you from working for a while. If your mortgage is 43% of your income, you'd have no wiggle room for when you want to or have to incur additional expenses.

Most mortgages are long-term commitments. Keep in mind that you may be making those payments every month for the next 30 years. Accordingly, you should evaluate the reliability of your primary source of income. You should also consider your prospects for the future and the likelihood that your expenses will rise over time.

Can You Afford the Down Payment?

It's best to put down 20% of your home price to avoid paying private mortgage insurance (PMI). Usually added into your mortgage payments, PMI can cost between 0.5% and 1% of the entire mortgage loan amount annually.﻿﻿

A smaller down payment won't mean purchasing a home is impossible. You can buy a home with as little as 3.5% down with an FHA loan, for example, but there are bonuses to coming up with more. In addition to the aforementioned avoidance of PMI, a larger down payment also means:﻿﻿

Smaller mortgage payments-for a $200,000 mortgage with a 4% fixed interest rate for a 30-year term, you would pay $955. If your mortgage were $180,000 with a 4% interest rate for a 30-year term, you'd pay $859.

More choices among lenders-some lenders won't offer a mortgage unless you put at least 5% to 10% down.

Being able to afford a new house today is not nearly as important as your ability to afford it over the long haul. Needless to say, being able to afford a house and having a down payment doesn't answer the question of whether now is a good time for you to act on that option.

The Housing Market

Assuming you have your personal money situation under control, your next consideration is housing-market economics-either in your current locale or the one where you plan to move. A house is an expensive investment. Having the money to make the purchase is great, but it doesn't answer the question of whether or not the purchase makes sense from a financial perspective.

One way to do this is to answer the question- is it cheaper to rent than to buy? If buying works out to be less expensive than renting, that's a strong argument in favor of purchasing.

Similarly, it's worth thinking about the longer-term implications of a home purchase. For generations, buying a home was almost a guaranteed way to make money. Your grandparents could have bought a home 50 years ago for $20,000 and sold it for five or 10 times that amount 30 years later.

While real estate has traditionally been considered a safe long-term investment, recessions and other disasters can test that theory-and make would-be homeowners think twice.

During the Great Recession many homeowners lost money when the real estate market crashed back in 2007, and ended up owning homes that were worth far less than the price at which they were purchased for many years after.

If you are buying the property on the belief that it will rise in value over time, be sure to factor the cost of interest payments on your mortgage, upgrades to the property and ongoing, routine maintenance into your calculations.﻿﻿

The Economic Outlook

Along those same lines, there are years when real estate prices are depressed and years when they are abnormally high. If prices are so low that it is obvious you are getting a good deal, you can take that as a sign that it might be a good time to make your purchase. In a buyer's market, depressed prices increase the odds that time will work in your favor and cause your house to appreciate down the road.

It's too soon to tell what will happen to home prices in 2021. But if history repeats itself, we can expect a drop in home prices as a result of the COVID-19 pandemic and its dramatic impact on the economy.

Interest Rates

Interest rates, which play a large role in determining the size of a monthly mortgage payment, also have years when they are high and years when they are low. Obviously, lower is better. For example, a 30-year mortgage (360 months) on a $100,000 loan at 3% interest will cost you $422 per month. At a 5% interest rate, it will cost you $537 per month. At 7%, it jumps to $665. So if interest rates are falling, it may be wise to wait before you buy. If they are rising, it makes sense to make your purchase sooner rather than later.

Time of Year

The seasons of the year can also factor into the decision-making process. If you want the widest possible variety of homes to choose from, spring is probably the best time to shop. "For Sale" signs tend to spring up like flowers as the weather warms and lawns turn green. Part of the reason relates to the target audience of most homes: families who are waiting to move until their kids finish the current school year but want to get settled before the new year starts in the fall.

If you want sellers who may be seeing less traffic-which could make them more flexible on price-winter may be better for house hunting (especially in cold climates), or the height of summer for tropical states (the off-season for your area, in other words). Inventories are likely to be smaller, so choices may be limited, but it is also unlikely that sellers will be seeing multiple offers during this time of year.

Consider Your Lifestyle Needs

While money is obviously an important consideration, there are a host of other factors that could play a role in your timing. Is your need for extra space imminent-a new baby on the way, an elderly relative who can't live alone? Does the move involve your kids changing schools? If you'll be selling a house in which you've lived for less than two years, would you incur capital gains tax -and if so, is it worth waiting to avoid the bite?﻿﻿

You may love to cook with gourmet ingredients, take a weekend getaway every month, patronize the performing arts, or work out with a personal trainer. None of these habits are budget killers, but you might have to do without them if you bought a home based on a 43% debt-to-income ratio alone.

Before you practice making mortgage payments, give yourself a little financial elbowroom by subtracting the cost of your most expensive hobby or activity from the payment you calculated. If the balance isn't enough to buy the home of your dreams, you may have to cut back on your fun and games-or start thinking of a less expensive house as your dream home.

Selling One Home, Buying Another

If you are selling a home and plan to buy another, save the proceeds from your current home in a savings account and determine whether or not-after factoring in other necessary expenses like car payments or health insurance-you will be able to afford the mortgage. It is also important to remember that additional funds will have to be allocated for maintenance and utilities. These costs will undoubtedly be higher for larger homes.﻿﻿

When you calculate, use your current income, and don't assume you'll be making more money down the road. Raises don't always happen, and careers change. If you base the amount of home you buy on future income, you might as well set up a romantic dinner with your credit cards as you'll end up in a long-lasting relationship with them.

However, if you can handle these extra house costs without extra credit card debt, you can afford to buy a home-as long as you have saved up enough money for your down payment.

Do You Plan to Stay Put?

Affordability should be the number one thing you look for in a home, but it's also best to know how long you are going to want to live there. If not, you could get stuck in a home you can't afford in a city or town you're ready to leave.

Many financial experts suggest living in a home for five years before selling it as a guideline. Don't forget to factor in the costs involved with buying, selling, and moving. Also consider the break-even point for the mortgage fees associated with the home you are selling. If you can't decide what city or town you are going to live in and what your five-year plan is, it may not be the right time to buy a home.﻿﻿

If you want to buy a home without a five-year plan, purchase one that is priced much lower than the maximum you can afford. You'll have to be able to afford to take a hit if you have to sell it quickly. Another exception: If you work for a company that buys the houses of relocated employees-one name for this is a guaranteed buyout option.

The Bottom Line

Are you ready to buy a house? In short, yes-if you can afford to do it. But "afford" isn't as simple as what's in your bank account right now. A host of other financial and lifestyle considerations should figure into your calculations.

When you factor in all these elements, "if you can afford to do it" starts looking more complicated than it first appears to be. But considering them now can prevent costly mistakes and financial problems later. Of course, there is one best time to pounce: When you find the perfect house in the perfect place for sale-at a perfect price.

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Are you ready to buy a house? How much can you afford? Answering that second question may not be so easy. Before you snap up that seemingly great buy on a home, learn how to analyze what "affordability" means. You'll need to consider various factors ranging from the debt-to-income (DTI) ratio to mortgage rates.

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1. House market price decreasing
2. Equity
The reason that I picked this video because it demonstrates the current benefits of purchasing a home, particularly during the current inflationary period. Purchasing a house to rent out is a wise investment strategy, especially during an inflationary environment. Purchasing rental property means accepting people's money as an income and paying the bank to save up equity for yourself. During the current inflation period, you may buy a house for less than market value, meaning you acquire 5% to 15% equity as soon as you close the sale.

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The post offers advice on where to look for rental homes. A local real estate agent, driving around potential neighbourhoods, looking through classified advertising, and using social media and word-of-mouth are some of the advice given. The article also stresses the significance of being proactive and organized by having all required paperwork and finances on hand, as well as by being aware of your budget, preferred location, and amenities. Before signing a lease agreement, the article advises being wary of rental scams and completing in-depth research and inspections.
In my opinion, the majority of those looking for housing for rent are young and inexperienced. Hence, the advice and ideas are undoubtedly crucial and really assist them.

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How to Find Houses for Rent (Hint: An Agent Can Help!)

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If you’re wondering how to find houses for rent, we’ll walk you through the nine best places to look — and help you avoid scams.