Question

Often people assume the purchase of a house is ideal. In your own words, explain the risks of owning a home, risks of certain types of loans and why renting may be preferred to purchasing a home.

Answer 1

The people prefer to rent a house than to own a home because

1) The owning of house, in most of the cases, will invite loans and risk associated with it.

2) The owner of the house has to undertake extra costs like maintenance and house tax.

3) The renting of house will bring one time expense, which are taken as deduction under tax.

4) Re-selling of house will bring more and more problems, so renting is preffered.

5) Through owning a house, the risks of loans taking like fix interest and installment comes up.

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