Why Consumers Decide to Rent or to Purchase a House.
Abstract
The purpose of this research study is to provide reasoning as to why some consumers choose to rent property and others choose to invest in property. Specifically, if a consumer could pay the same monthly rate for a mortgage as they do in rent, why would they choose to rent instead of purchasing housing and building equity? Some factors that will be observed include, location of the properties, age of consumers, lifestyle, and gender. Initial assumptions to the proposed question are closely related to lifestyle and age. Younger adults that have recently entered the workforce may be less likely to want to commit to buying property based on their plans or lack of plans. For instance, a new member of the workforce may choose to over spend on rent solely based on the fact that they will not have to worry about selling a property if they are relocated. Essentially, it is easier to renegotiate a lease, than it is to sell a property in a short amount of time. Further reasoning may include the choice of lifestyle. Some consumers may enjoy the convenience or location that a rental property offers, opposed to that of which properties for sale may offer. It would be useful to evaluate a consumer that is given a choice between rental payments on a property that costs the same as a mortgage for a similar property, while testing what factors could be influencing their decision to buy or to rent.
Why Consumers Decide to Rent or to Purchase a House.
The purpose of this research study is to provide reasoning as to why some consumers choose to rent property and others choose to invest in property. Specifically, if a consumer could pay the same monthly rate for a mortgage as they do in rent, why would they choose to rent instead of purchasing housing and building equity? Some factors that will be observed include, location of the properties, age of consumers, lifestyle, and gender. Initial assumptions to the proposed question are closely related to lifestyle and age. Younger adults that have recently entered the workforce may be less likely to want to commit to buying property based on their plans or lack of plans. For instance, a new member of the workforce may choose to over spend on rent solely based on the fact that they will not have to worry about selling a property if they are relocated. Essentially, it is easier to renegotiate a lease, than it is to sell a property in a short amount of time. Further reasoning may include the choice of lifestyle. Some consumers may enjoy the convenience or location that a rental property offers, opposed to that of which properties for sale may offer. It would be useful to evaluate a consumer that is given a choice between rental payments on a property that costs the same as a mortgage for a similar property, while testing what factors could be influencing their decision to buy or to rent.