I completely advocate buying over renting. BUT only you can make the determination if YOU are ready to be a home owner.
I own several rental properties, all of which cash flow. Before you buy, find out what houses rent for in the area and if rents are on the rise. If your rental payment would be as much or more for a similar propety, then you know buying is the right choice for you. Building equity is your prime goal, so hire a Realtor that understands what is going on with the market both with rentals and sales. Ask them if they own rentals and what their experience has been. Nothing replaces actual experience when you intreview a Realtor.
Realtor, SFR/Team Leader
Century 21 Arizona Foothills
Veracity Realty Group
60 months multiplied by $950.00 assuming no rent increases in the 5 years (very doubtful) = $57000.00 WOW! This is not rocket science, you practically answered the question yourself. 1. First time home buyer credit. 2. Interest rates at an all time low. 3. Homes at rock bottom prices. 4. Property taxes and interest are tax deductible. Why wait! You can buy something with a lower price point and get very close to your monthly $950.00.
There's your answer of what your decision should be.
Don't confuse cash flow with monthly payments as a good financial metric for your decision. If you want the facts, I can show you worksheets of rent vs buy with your own numbers so you can make your own decisions. Let the numbers speak for you.
Should I buy? Shouldn't I buy?
HEY!! Snap out of it Swami! We are not ordering Chinese here, were buying a house !
If you wanted to buy a home. You would.
If you walked into a house and said I have just got to have this home, it`s perfect!...you would buy it .
You need to look at homes in the 100 to 150K price range, I am sure if you found a home that you could own for less than renting you would buy it.
And you could put an end to all of this wishy washy B. S.
That is a great question and one you may want to discuss with your accountant.
5 Years is along time and things don't always work out the way we expect them to, I think if I were you I would live for today. Buying a home at these prices and rates are not going to happen again for a long time.
You have tax write off's when owning your home that you don't when renting.
Many investors are buying properties because they see a great opportunity of buying low. Selling high maybe not in the near future, but there are a lot of investors flipping homes too.
If you bought today and moved in 5 years and only made 5,000-10,000 would you be pleased?
I think we have hit bottom and you just need to ask yourself do you want a home or investment?
The buyers credit should off set the first year and not even counting the your Tax write offs.
Call me if you need a Realtor Sara Pichelmann 480-495-4175
This will give you a payment within $1200 to $1300 a month. Then you get that back in the tax credit and you own your own home while being able to deduct the interest from your taxes. It makes perfect sense! Hope this helps you!