Question

Discuss the factors that an individual should consider when comparing renting versus buying housing. Discuss the importance of the location in the housing buying decision.

Answer 1

Factors which are to be considered when comparing renting vs buying decisions are as follows-

A. Ownership of equity- ownership of equity is one of the most important factor while considering whether to buy or weather to rent because some people are highly obsessed with ownership of asset.

B. Taxation- tax will have another important implication on whether to buy or weather to rent because taxation have a higher benefit for paying rents

C. Home maintenance cost are another factor which will be playing an important role on deciding upon whether to buy or whether to rent because it will be also occupying a significant chunk of expenses

D. Repair and remodeling cost are also to be considered when we are deciding upon whether to buy or whether to rent.

E. Location of the home are also playing an important role in order to decide buying of the house over renting of the house because various individuals are not settling and they are always looking for new locations.

importance of location is immense in buying decision because various individuals are always tracking the neighborhood and the society in which they are gaining the ownership of home because it will be impacting not just present of their life but it will be impacting the future also they are highly sceptical about the the neighbourhood and the the availability of resources in the neighborhood.