Home Ownership Verses Renting
It is the American Dream to own a home, and it is influenced heavily in today’s society. Commercials for home furniture to home makeover ideas inspire one’s imagination and creativity to run wild and become over ambitious. It seems to be the classic trademark of the American Dream, to be independent and to have a sense of belonging and possession, to do with as one would please. However, what are the viable and cost effective options between home ownership and renting? It seems as though when analyzed that there are more differences than there are truly similarities. Similarly, in both home ownership and renting, one wants a warm, inviting, comfortable, and safe home, a place to either start a new family or raise an existing one. Dissimilarly, home ownership and renting are set apart by the many fees and the unique characteristics that come with each one.
Fees vary greatly from home ownership to renting, and are primarily the largest aspect considered when deciding between wether home ownership or renting is right. Home ownership carries an annual property tax which is a fluctuating percentage calculated on the assessed home value. Renters are not likely to pay directly for property tax; however, it can sometimes be built into the rental price. Sales tax will be seen upfront as part of the closing cost associated with home buying. Contrary, renters will not have to worry about sales tax at all. Home Owner
Association Fees, if any, are primarily paid by the property owner annually. Renters should not be effected by HOA fees although it can sometimes be built into the rental price as well. Home owners insurance covers the homeowner in the event of property damage, but does not cover the renters personal possessions in the property. Renters do not pay for the home owners insurance directly, but again can be built into the rental price. Renters concerned about personal property damage can get a renters insurance policy...
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