Reina from Colombia wrote today’s featured student essay. To see more of our students’ writing, check out The Globe.
There is an important stage in an adult´s life that brings different challenges and responsibilities related to have a place to live, establishing a family, or getting job. When people have to make their own decisions to choose a place to live, many prefer to rent a house instead of buying one because they think it is difficult to buy a house. However, people should buy a house for several reasons.
Some people say that buying a home is impossible because they do not have the money to pay the mortgage. While that may be true, there are many paths to buying a house that are achievable. One way is to build one´s credit. There are two main ways to get a good credit score, such as get a credit card and the pay taxes. The advice is just to have an only credit card to buy things that people need. In this way, it is possible that a person will pay monthly fees. When people are responsible and pay their financial obligation on time, they can get a good credit rating to apply for a mortgage loan. In fact, the number of mortgages written post 2009 now account for nearly 62% of all active loans (Mayer, Chris. Pence, Karen and Sherlund Shane M). This shows that it is possible to get a mortgage loan to buy a house.
Second is focusing on the long-term investment. People who pay a lease somehow are wasting their money. Even though it is true they are paying for a place where to live, they do not have their own place. For this reason, they can pay the monthly fee of a mortgage loan with the same amount of money that they pay a rent. The big difference is they could pay for their own house and in a medium or long term, they would have their best investment of their lives. One thing that people should know is the price of their house increases over time. This means equity because their long-term investment has returns. Equity is the difference between how much the home is worth and how much you owe on the mortgage (Bankrate.com).
Others argue when people rent an apartment or home, they can move more easily than if they live in their own house. However, even someone who is living in a house for a short period of time can still make a return on their investment in a home. People who rent a house must to sign a lease for specific period of time. If somebody needs to move because he was promoted to another work in different city because he gets a job very far away from his house, he cannot move when he wants. This is an agreement and nobody would like to be identified for breach of contract. In the worst case, he must to pay a penalty if he has to move faster, and get a recommendation in next opportunities. On the other hand, it is easier to move if you are the owner because it is simplest to make a decision when necessary. You can manage your time, you do not lose time arguing with landlords and lawyers, and you do not have to pay penalties. Instead of caring about how cancel lease agreements, you can find many real estate agencies who could manage your house and the lease process of leasing it. In this way, you can move quietly because a company is taking care of your house, and you can earn money for the rent of your house. So, this is one more benefit that people get when they choose to buy a house.
Finally, many believe that when people rent, they do not have the responsibility of repairing the property. Although that is true, the money given to repair is a return on your investment in the long-run. Additionally, these people have to pay a security deposit for their apartment, which goes toward repairs if the apartment is not in good condition. Although you may not have the responsibility to repair damages or take care of normal building maintenance where you have rented an apartment with manage monthly fee you are paying for the building maintenance. For example, a tenant does not have the responsibility to mow the lawn. This means less responsibility in comparison with the house owner because he has the responsibility to take care his property. If he does not mow the lawn, he can pay someone else to do it. In this case, the tenant can say that the owner spends additional money than he, but the reality is they both pay for this job. However, only the owner is aware of his responsibility because it is his house.
In conclusion, nowadays many people may think that it is more convenient to rent a house because the process is easier and faster, and they do not have to worry about getting large sums of money to buy a house. Despite this, many believe that buying a home is one of the greatest achievements on a personal and financial level. It is one of the goals most desired and contribute to a better quality of life for you and your family. Knowing that you have a roof and a place that belongs to you will always give you a sense of security and quietness.
- Mayer, Chris. Pence, Karen and Sherlund Shane M. “The Rise in Mortgage Defaults”. Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Aﬀairs Federal Reserve Board, Washington, D.C. November 2008. https://www.federalreserve.gov/pubs/feds/2008/200859/200859pap.pdf Accessed 16 April 2017.
- Definition of Equity Word: http://www.bankrate.com/finance/home-equity/what-home-equity-debt-is-1.aspx Accessed 16 April 2017.