If we are not at the bottom of the market we are close to it and certainly closer than 2-5 years ago. Loan rates are at historic lows and buying now, if you can afford to, just makes good economic sense. Remember, the only way to determine the bottom of the market is to look back at it, meaning it has already passed. Take advantage of the low prices, low rates and large availability of homes to choose. Add in the tax advantages and you will find it is a great time to be a buyer, bad time to be a seller.
Go for it - stop helping out your landlord.
Now let's talk about purchasing a home. There are so many upsides to this. In the long run the money you're paying for your mortgage will build equity in your home. In the history of real estate there's only been a few times that values have gone down so purchasing a home is one of the biggest financial investments you might every make. There's still a tax break for owning a home and hopefully that'll never change. How about the pride of owning your own home. You can personalize your own home which you can't do if you rent. There's is upkeep and maintaining a home but that's all part of the big picture.
Great question! Buying a home gives you an opportunity to gain from actually owning the property should propriety values increase. In addition as the owner you control the property and can make changes / upgrades to the property to increase the value. Ownership also offers some tax advantages you don't get with renting. Ownership is usually a great long term value. The downside is if you buy a home you may have to keep it for years to see the appreciation in this market. Renting is a good option if you need short term residence and don't care about property appreciation, or building equity. An advantage to renting is if you don't like where you live for any reason you can move when your lease contract ends. Another advantage is you normally are not responsible for property repairs. That's the landlords responsibility. The disadvantage is that you don't build equity and may see your rent increase as the market changes or your landlords expenses increase. A possible hidden advantage to renting is if you can rent with the option to buy and the landlord / seller allows you to have some control of the property. If this is allowed, you may be able to make changes to the property and sell it for a possible profit. In closing, this is a great market to buy a home as interest rates are low and prices are low. Add that to a large supply of homes with some sellers very motivated to sell and you have a fantastic buyers market.
All the best,
Check the web reference.
Did you publish your paper? Is it online? I want to read it!
Renting is better if you don't care about building wealth. Yes, obviously you have to accumulate real assets if you want to build wealth. However, not everyone cares about wealth. Some people don't mind helping their landlords pay for their real estate assets as long as they have the freedom of moving whenever they please. If this is your reason for renting, then don't sign a 1yr lease. That would be the worst of both worlds - not building wealth and not having the freedom to move.
I did a comparison analysis of renting a 2 bed room apartment here in Santa Clarita(Los Angeles) vs.
buying a $200K condo.
Ask your lender to do a similar analysis so that you can see exactly what make more finance sense
for your situation.
Buying a home has historically been the most popular, and safest, way to build wealth. It will likely be the largest investment most American's will ever make and it's value will increase over time. However, timing is everything. Stability is key. For example, if you plan on relocating in a year or so, it is probably wiser to rent. Keep in mind that the current tax law states you pay taxes on the gain on sale of a house if you have lived in it less than two years.
With that being said, interest rates and home prices are at historic lows and it truly is a fantastic time to buy if it makes sense in your current situation.
1. Owning a Home is one of the greatest gifts you can give yourself, your family and your life's enjoyement
2. When you own a Home if you want to paint your living room multiple colors you can.
3. When you own a home and say run alittle late on your payments you can't be kicked out in 30 to 45days.
4.When you pay a mortgage taxes insurance etc you get certain tax breaks
5. When you own a home and you decide to leave it, you can sell it and possibly make some extra money, when you rent and leave you just leave with no benefits that home ownership has.
6.when you own a house its a place that you really do call HOME and provides a place where family and friends gather and where you and yours become a part of the community and have a voice about what goes on.
7.Our final comment about rent vs buy is today's market has so many great deals, non foreclosures since right now alot of foreclosures have a huge amount of issues. We're saying regular owned homes are such a great deal with plenty of potential equity you just can't go wrong.
All the Best
Dave & Lisa