Tenant’s Deal: Buying or Renting - Which One is Best?

Posted on July 8th, 2008 | by John Glenn |

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It is a hard core fact that when the sales of houses come down, the price of rental increases at the same time. In recent years, the demand of people for rental house is rising speedily. But one thing the tenant has to keep in mind is that the renting is not better for a longer period of time for him. In US, one in seven households spends their half of the income on housing. The low income earners and first time home buyers have to go through this burden the most.

The massive increase in rental indicates that majority of people opt to maintain a distance from the housing market. Another reason is how smooth the housing market presently. Because of these reasons, renting is one of the popular options for those who are looking for home.

Contrary to rise in renters, there are some reasons states that buying may be better than renting. Mortgage Bankers Association reported that the percentage of purchase loan application has been increased 5.4 %. Moreover, the interest rate of mortgage has been raised a little bit.

In one word, if the rate of something goes extremely down, the rate of the same must come up one day. Still it depends on person to person which he or she actually wants to do. Both renting and buying have their own pros and cons, so it depends on the tenants to choose the one which suit them the most.