Before rushing out and putting a down payment on a house, take a quick glance at the pros and cons of buying as against renting a home.
There are cases where home renting might be better.
1. If you are going to be in a place for just a short time, you may want to rent. Unless of course the market goes through the roof in a brief time, your appreciation in a house could be eaten up by buying and selling costs.
2. If you live in a place where rents are cheap and appreciation of housing price is low,
3. If you depend on a superintendent to fix your apartment and can never do it yourself, home ownership is not for you. But most individuals think the advantages of buying far outweigh those of renting.
When you rent a home, you are left with a bunch of rent receipts instead of a value that is your own. With the tax deduction, you pay less for a house compared tothe renter paying the same amount as rent. In many regions, rents are going up. Paying for the same amount or even a bit more in mortgage payments pays back in tax deductions and housing appreciation. In high-rent areas, the aftertax cost of owning is similar as renting for households earning $50,000 a year or more. Given those circumstances, why rent?
That is a decision you must make depending on the situation in your area. Whatever your situation, prior to buying a home, you might want to consider the true cost of buying, as well as all expenses and gains.
© 2012 Athena Goodlight