Assignment 3 is an outline. Each point on your outline needs to be a complete sentence. Your outline needs to follow this basic structure:
I. Buying a house is what everyone wants, but renting may be the way to go for certain people. A. The choice of buying versus renting a house can be a big financial decision. B. When making the decision of buying or renting a house it is important to consider a few things such as cost effectiveness, the positives and negatives of equity, and handling maintenance problems.
II. One positive outcome of buying a house is it is a better investment in long run. A. Buying a house would save a person or family around $61, 500 and that renting would save someone $15, 000 (Tugend, 2011). B. When renting you are paying the landlord a monthly payment rather than investing into a house.
III. Another major advantage of buying a house is each time you pay your mortgage you earn more equity on your house.
A. With the real estate value right now is the time to buy because when prices go back up you will earn more equity. B. The property’s equity increases as the debtor makes payments against the mortgage balance (http://en.wikipedia.org/wiki/Home_equity).
IV. Finally, when owning a house it is your responsibility to handle any maintenance problems where as the landlord is held responsible to fix anything maintenance related when you are renting. A. It is important to make sure when buying a house you may have the funds if any maintenance problems occur. B. Homeowners are responsible for buying any maintenance items such as lawn mowers, snowblowers, and washers/dryers (Tugend, 2011).
V. These important facts should help conclude the decision of whether or not you should buy a house. A. We discussed how cost effectives, equity, and managing maintenance all play a...