To Rent Or To Buy, That Is The Question…

Why rent an apartment when owning a home is so affordable?

With home prices and mortgage rates so low, renters should consider buying a home instead. While there are some downsides to property ownership in these times of little funds (such as the cost of maintenance), owning is still a good investment when prices are so affordable.

However, Dawn Wotapka writes that homeownership in many large cities is still unobtainable for most buyers. Cities such as New York, Los Angeles and San Francisco still have unaffordable home prices, even though they have the most job opportunities.

Nonetheless, benefits of homeownership are many. Here are some of the financial and social aspects of owning your own home:

1. Tax write-offs for mortgage interest and property taxes.
2. Eventual home equity.
3. Management and control of home value.
4. Pride of ownership.
5. Control of design, decoration, and improvements.
6. Sense of belonging to a neighborhood or community.

Home buying is a very personal decision. Think about the purchase very carefully. Take a look at your budget and figure out if buying a home is right for you. The use of a “rent vs. buy” calculator to determine if you should purchase a home can help you decide if you want to stay a tenant or become a homeowner.