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final week 9 - Renting an apartment is a better option then...

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Renting an apartment is a better option then buying a home Jamie Jordan Com/156 November 14, 2010 Nicole Hudson
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Renting an apartment is a better option then buying a home It is said that renting an apartment is a better option then buying a home, when in reality buying a home is a much better option than renting. Renting is like throwing away your money and it is more cost-effective in the future for you to own your own home also, your monthly housing expenses are not contributing to build up equity. When someone is renting a home, it is like throwing away money. A person that is renting a home, he or she is making a temporary investment into someone else’s property, basically when you are renting a home you are paying someone else’s mortgage and helping them become financially secure. Here is an example. “If you are paying rent at $1,500 per month and your landlord increases your rent by a modest 5% each year, you would wind up paying just about $100,000 over a five year period. Worse yet after paying your landlord over $100,000, you still would not have anything to show for it.” It is better to have put that $100,000 in the equity of a home that you are purchasing rather than putting it in the equity of someone else’s home. Buying a home with a fixed rate, your mortgage will not increase. However, if you are renting an apartment your rent can go up once a year. The best way to avoid the rent from increasing is to own your own home.
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Monthly housing expenses are not contributing to build up equity if you are renting an apartment. With a mortgage you are building equity; it makes more sense to buy a home than to rent a home. When a person is renting there are certain tax breaks you can not receive. After you buy a house, you normally
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