Persuasive Speach – Buy vs. Rent

Project 4 Written Outline heretofore in this economy it is still better to secure a menage then profligate. I. Why pay rent and make the landlord easyer when you stomachnister have your own home for basically the identical monthly payment and reap the tax benefits yourself. II. In 2006 I was faced with having to make the decision to cloud or rent. After researching found I could buy a 4 sleeping room domicile in a good atomic number 18a for same price of lease a 2 bedroom apartment. Also works for the government I knew the tax advantages I would get so I dont have to tell you which decision I went with.III. at once I am divergence to show you that get a ho usage is a better choice then contract even in this unstable economy. IV. There are many programs that encourage people purchase a home. First time homebuyers even with bad credit gouge qualify. Do you k without delay where to look? I leave provide you with somewhat internet sights that goat be of assistance . V. There are many reasons wherefore home buying is better than renting the few that I will talk ab bring out are 1. Long term buying cost less on a twelvemonthly basis then renting. 2. sincere financial investment and low interest charge per units and 3.Tax advantages Now that we are coming to a close on the semester some of you are way out to be faced with the decision upon graduation as to whether you should buy or rent. I. If you have already decided that you will be staying in a certain area for at least 7 years it is shown that buying is cheaper than renting. a. On April 21st. 2010 the NY Times reported that if you remain in your home for 7 or more years you will save approximately $759/year over renting. b. Did you know you could also use the rent ratio to help determine what areas are better to buy in?To determine rent ratio you look at the average purchase price of a house and divide that by rent of a similar house. If the rate is under 20 it is a good indication to bu y i. round areas that are currently under 20 include Philadelphia, New York. Boston. Washington, Cleveland, Chicago, Dallas, capital of California and Los Angeles ii. In the 4th quarter of 2005 the rent ratio for Philadelphia was 17. 2, since then it has dropped to 16. 7 (4th quarter of 2009) this shows that now is still a better time to buy then rent in our area.In 2006 I had to evaluate my own mess and the Pros and Cons of buying vs. renting. II. I compared what I would pay for a 2 bedroom apt to what I would pay for a home. I found that I could buy a 4 bedroom house in a good area and get a mortgage with a 7. 5% interest rate. My monthly payment would have been the same as renting an apartment. a. Last year I refinanced with all the programs that were being given out because of the financial problems banks were having. I was able to get my interest rate downhearted to 4. % and now my mortgage is only $750/month (and that includes my taxes being escrowed) b. Now where can you r ent a 4 bedroom house for $750/month in a good stable area? c. Even though the lodgment market is on the mend you can still get in on a low interest rate today at about 5. 13%. d. Owning home helps to build truth that you can use later in life for other events like your child going to college adding an addition to your home. It also lets you be in control of your interior decorating and your outside landscaping.No need to sit around waiting on a landlord to deal fix something that has broken, or losing a deposit if place isnt in condition the landlord wants it to be in. Buying a home has tax advantages that renting does non. III. When buying a house certain be can be deducted on your tax returns giving you benefits instead of a landlord. a. Closing costs and points paid are deductible on Schedule A as Itemized minuss. b. You can also deduct your interest payments on your mortgage as well as School Taxes, County Taxes, etc. c.Also recently added was that you can now claim PMI p ayments. d. Even if your itemized deductions are lower than the standard deduction you can still reap the tax benefits of being a homeowner. i. If you can not itemize you can claim an additional $500/1000 deduction (single/joint) added to the standard deduction line on the tax return. Today I have shown you that buying a home is better then renting. terminal Buying saves you notes in the long run. Youre investing in your future and providing yourself with stability and security in your community.Your building up equity in your home as you pay off your mortgage and reaping the tax benefits instead of writing a check to a landlord and watching your money go out the window. You can find more information at the following sites www. Rentlaw. com, www. smartmoney. com, www. hud. gov/buying. comq. cfm, and to find out current mortgage rates you can visit www. bankrate. com I. So lets stop making others rich and give yourself the financial security and stability you deserve by owning the American dream. Your own home