Final answer:
Renting can be more suitable than getting a mortgage for someone who wants to avoid spending time and money on maintenance. Renting offers flexibility and avoids certain costs, but does not build equity. Buying a home is an investment that can build equity and provide tax benefits, but requires a significant initial financial commitment and ongoing maintenance costs. The correct option is d.
Step-by-step explanation:
The question asks for which person renting a home may be more suitable than buying a home and getting a mortgage. Renting can be a better choice for different types of people based on their needs and financial situation. When it comes to the options provided, D. Someone who wants to avoid spending time and money on maintenance is the best answer. Renters are not responsible for maintenance, whereas homeowners must handle all repairs and upkeep themselves, which can be costly and time-consuming.
Comparing the advantages and disadvantages of renting vs. buying a home is essential in making an informed decision. Renting offers the advantage of flexibility, with the ability to move without the commitment of a mortgage. Renters also avoid the costs associated with home ownership such as maintenance, property taxes, and home insurance. On the other hand, renting does not build home equity, and rent may increase over time, unlike a fixed-rate mortgage where payments remain stable.
Buying a home can be considered a long-term investment, as you build home equity and may benefit from property appreciation. Homeowners can also deduct mortgage interest on their taxes and improve their credit score by making regular payments. However, home ownership requires a significant initial investment, and there are additional costs to consider, like maintenance, property taxes, and insurance.
When assessing the transition from renting to home ownership, it's crucial to evaluate the costs and benefits, including changes in monthly payments, potential tax deductions, and overall financial stability.