Research And Discuss What Is Better: Mortgage Or Rent? (Essay Sample)

What is better: Mortgage or Rent?
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What is better: Mortgage or Rent?
Many individuals who do not own homes continuously face the dilemma of deciding whether to rent houses or take out mortgages to purchase residential properties. Each of these options has numerous benefits and drawbacks. Renting a house leaves one with the freedom to move out whenever they like. Because rentals may be cheap, tenants incur less short-term expenditure. However, it subjects the tenant to the mercy of their landlords and landladies who may change the terms of engagement at any point. Conversely, the capital of a mortgage may be expensive, but gives the comfort of security and ultimate property ownership. Despite being considered expensive, mortgages offer better options compared to rent because they offer affordable ways of owning homes and cost effective ways borrowing.
The most common reason people choose rent over mortgage is financial. Many who cannot afford down payments for homes consider renting a better option. The inability to raise such capital may be caused by poor credit rating or excessive debts. Hence, individuals may stay in rentals as they continue building their credit. According to Manturuk, Lindblad, and Quercia (2017), the extra expenses required for maintenance and renovation of homes may be another reason to rent. Additionally, those who rent have no binding attachment and can move out to cheaper or preferred locations at will. Notwithstanding, an analysis by Buzi (2017) indicated that various disadvantages still make this option undesirable. If the home owner decides to sell the house, one is subjected to a new lord who may even issue an inconveniencing eviction notice. While the privacy of tenants may always be compromised by neighbors or owners, their rules of engagement can be changed at any time. A typical example is the sudden increment of rent.
On the other hand, mortgages may appear expensive but still offer a better and more comfortable option. When processing a mortgage, one requires a large sum of money or creditworthiness for the initial capital. While mortgages come with exorbitant interests, buyers still have to meet additional fees for set-ups, insurance, and legal proceedings. In the long run, buyers in this category still end up paying more than they borrowed by far (Anderson, 2017). This is the reason some schools of thought dismiss mortgaging and prefer renting instead.
An evaluation by Manturuk, Lindblad, and Quercia (2017) comparing the overall cost of mortgaging with that or renting revealed that renters pay much more than mortgagors do in the long run. Over a period of five to ten years, most tenants in rental houses pay the approximate cumulative price they would have paid for the property if they used a mortgage. This leaves mortgaging a better option as many other benefits ensue. As one pays the mortgage, they move closer to owning the house. No landlord can harass them. At the same time, they acquire express freedom to modify the pr...