Interest rates are being held down to stimulate home buyer and investing. Rents have gone up as demand exceeds supply.
Historically, home owners have fared better financially than renters.
However, life is short - and there's no sense in tying yourself to a property if you want to live a footloose, fancy free lifestyle.
All the best,
Unwavering Commitment to Service, Unsurpassed Results
The traditional advantage is the tax deductability of mortgage interest ---- thus having a 'silent partner' in the IRS in the early years of your mortgage. Depending upon your purchase and the purchase price, a home has also been the conventional American equity builder. Once again, that tends to be a longer term proposition, 5 years or more. There are SHORT SALES out there if you are patient enough to wade through the long-winded and less predictable process.
But, as my esteemed colleagues point out, interest rates are at historic lows, so, if conditions are right, there's no time like the present to purchase.
1. Financially - you should know what it will cost you to rent the home of your choice and what it would be to buy it. This will vary based on the area you are interested in and the particular community. With the interest rates being historically low, it has worked out cheaper for my Buyers to buy Vs rent the same kind of home. You get to write off the interest rate and the real estate tax at the end of the year when you mortgage a home. You get no such benefits with renting. Market in a lot of areas is getting better now. If you don't buy now, you may end up paying more later. Generally speaking in the longer run owning will work out to be beneficial than renting.
2. Emotionally - you want to ask yourself if you like the idea of owning or renting. If you buy, you will have the responsibility of home ownership so make sure when you do buy, that you allocate some money for repairs. On the other hand you will have a place that you can call your own and you don't have to worry about moving out or renewing leases.
You may want to check out my blog for more useful information:
Keller Williams Realty