Comparison Buying a Home vs. Renting an Apartment Research Paper

Comparison Buying a Home vs. Renting an Apartment - Research Paper Example Renting is an agreement where a payment is made for the temporary use of a good or property owned by another person or company (Answers, 2009). Renting agreement are very popular in the United States because they are a cheaper way to obtain a home or apartment. A person that rents does not have to pay any property taxes since they are not the owners of the home. Lease agreements for apartments or homes typically are signed for a time span of one year. A person that rents an apartment benefits in others such as having great flexibility. If a person does not like the place, they can move out into another rented apartment after the term of the lease expires. Another advantage of renting is that a person does not have to have good credit in order to qualify for the lease. Credit scores and standing are rarely a part of the renting agreement process. We are living in some tough economic times. The unemployment rate in the United States has reached a whopping 9.5% (Bls, 2009). When people lose their jobs sometimes it is hard to pay a mortgage. A person that leases can maneuver better during hard economic times. A person that leases has the option of leaving the place and moving in with relatives until they get back on their feet. A rental agreement is short term commitment, thus it gives a person more flexibility as far as being able to relocate easier. Despite the many advantages of leasing, there are also major cons associated with renting. A person that pays rent is always giving money to someone else without the benefit of getting any financial rewards in return. When a person rents they are basically paying another bill, thus renting could be categorized as a type of expense. Buying a home is a completely different proposition. Â