The action of obtaining a house or apartment carries connotations of permanence, not only due to the act of sinking wealth into a non-liquid asset but also due to further future expectations of settling down. Renting allows for more mobility, but real estate property offers a more substantial living space while at the same time proving to be a considerable hurdle in responsibility and price. Overcoming the posed obstacles, purchasing a home can be more beneficial than renting, especially considering cost, comfort, and buyer confidence.
Possession of a house grants an individual almost full autonomy, allowing him/her to make decisions in his/her own home, which would be impossible in a rented space. The confidence that owning property provides is complemented by numerous other favorable circumstances such as neighborhood attractiveness and convenient proximity to nearby utilities like schools, parks, as well as closeness to friends and family. To speak of financial benefits, a study conducted by Goodman and Mayer shows that “owning a home appears to be generally financially advantageous relative to renting, regardless of whether a homebuyer itemizes deductions” (47). While renting is more worthwhile for a short period, for instance, to get used to prices in a respective area, long-term ownership provides the most profit and benefits.
Counterarguments to this may be individual prospects, as those transiting through areas in search of work may not need the stability and constraint that homeownership provides. Renting remains more accessible, allowing for heightened maneuverability and reduced responsibility, for example, regarding house repairs, but depriving tenants of acquiring any possible equity. The dependence on proprietors also leaves tenants at a disadvantage with little guarantees to individual honesty and goodwill, despite regulating contracts. All the same, home prices remain a hindrance, with children of high-economic backgrounds requiring familial assistance with purchasing houses, while those from low-income families remain unable to engage in the market (Druta and Ronald 789). However, government-sponsored homeownership programs and benefits create a possibility to modify these unfavorable conditions to suit individual needs with less emphasis on price.
Not only prompt residence but also simple possession can provide the consumer with a sense of security and satisfaction since even an empty house is not always a misuse of funds. Purchased homes present traveling families with the opportunity of a fallback plan in the event of an emergency or failure to secure a position in a new area. A paper by Du et al. states that “the decision for homeownership represents a balance between housing and non-housing expenditures that maximizes the utility of the individual or household” (99). From district attractiveness and possible property value growth to the probability of leasing out for an appropriate price, everything can be presented as a benefit. Renting out a purchased house could also provide families with additional income, which, with an adjustment to socioeconomic differences between areas, can prove a substantial advantage.
With market studies and statistics allowing for a transparent relay of information to the public, purchasing becomes a facilitated process, and the status associated with homeownership remains a stable constant. Together, all the arguments mentioned above present a case that property ownership remains, in most cases, the most beneficial scenario. The durability of real estate and stability procured stimulate buyer pride, fortify the status of homeownership, and reinforce product demand.
Works Cited
Druta, Oana, and Richard Ronald. “Young Adults’ Pathways into Homeownership and the Negotiation of Intra-Family Support: A Home, the Ideal Gift.” Sociology, vol. 51, no. 4, 2017, pp. 783-799. Web.
Du, Li Jing, et al. “Homeownership and Income Inequality.” Northeastern Association of Business, Economics and Technology Proceedings, 2015, pp. 98-107. www.nabet.us/proceedings-archive/NABET-Proceedings-2015.pdf. Accessed 27 July 2018.
Goodman, Laurie S., and Christopher Mayer. “Homeownership and the American Dream.” Journal of Economic Perspectives, vol. 32, no. 1, 2018, pp. 31-58. Web.