2. Advantages and Disadvantages of Renting or Owning a Home

3. Introduction: Background – Throughout the United States for generations it was typical for a couple to marry and then plan the purchase of their house. Today the face of the buyer has changed with many single people as well as families purchasing homes. Problem – Deciding when it is the best time - to buy a home, financially is crucial. Purpose – Explore the benefits of buying a home rather than renting. Scope – Examine the advantages and disadvantages of renting and buying a home while considering an individuals life style, goals and financial means.

4. Advantages to renting Level of freedom - a lease expires usually after one year and the renter is free to move on to another location with no penalty or loss Very little maintenance - more free time is available to pursue other interests Up-front cash - dramatically less than is necessary in the purchase of a home

5. Disadvantages to renting Throwing money away - which you will never see any kind of return. You are not investing it in a homes value Ability to decorate and personalize your living space is limited to minimum No tax advantage that the renter can enjoy. Your landlord will benefit from any kind of tax break Rent increase - yearly

6. Advantages to owning a home You are making an investment - if you do your choosing carefully, this investment will grow Tax benefits - you can deduct your mortgage interest and property taxes You can customize your dwelling in any way you wish Psychological benefits - a place to truly call home Owning your own home has been described as part of the American dream for generations

7. Disadvantages to owning a home Your home is an investment and its value or equity may go up or stay the same but it may also decline. It is somewhat risky If you decide to move, your home must be sold and this is a big undertaking Maintenance - that is an ongoing process. Either you pay for the maintenance or you do it yourself sacrificing much of your free time. A sizeable down payment - is usually required when buying home

8. Determining the Best Time to Buy Did you save enough money for a down payment? Is your job likely to transfer you to a new location in the next few years? Are you ready to assume the financial responsibilities associated with property and home ownership? Will the maintenance be too much of a burden to you? Have you found an area in which you are comfortable?

9. Conclusions We can conclude that the majority of people would benefit more from purchasing a home No matter what your status, single, married, divorced or just starting out in the workforce, it is usually a better option financially, with a few exceptions, to buy.

10. Recommendations Keep track of your credit report Spend some time at the home buyer's prep. school Develop a budget Get your financial picture in focus Find ways to save money on your purchases Familiarize yourself with the various terms you will hear relating to buying a house Investigate mortgage pre- qualification and approval Get mortgage offer comparisons Get a full understating of how agency works when working with an Agent Find and choose an Agent Compare housing types to choose the best for you: Single family, townhouse or condominium Check home listings and prices online Determine the value of a home Compare homeowners insurance

11. Works Cited Bluejay, Michael. How to Buy a House: Consider the Financial Impact of Buying a House. February 2004. 17 February 2004.http://michaelbluejay.com/ Dannan, Nancy. House & Home: Homeownership for Singles. 18 February 2004.http://houseandhome.msn.com/ Garton-Good, Julie. The Frugal Homeowners Guide: To Buying, Selling, & Improving Your Home. Chicago: Real Estate Education Company, 1999. Glink, R. Ilyce. 100 Questions Every First-Time Home Buyer Should Ask. 2 nd ed. New York: Three Rivers Press, 2000. Lank, Edith. Home Buyers Kit. 4 th ed. Chicago: Dearborn Financial Publishing, Inc., 1997. Mac, Freddie. New Buyer: Rent or Buy? 2004. 18 February 2004.http://www.newbuyer.com/ Murphy, Kate, and William Glasgall. The House of Your Dreams-Pixel by Pixel. Business Week (3594) 7 September 1998: Personal Business Russell, Judi. A New Home Is Well Within the Reach of Many Buyers. New Orleans CityBusiness 17(22) 12 February 1997: Focus Real Estate.