Not too long ago, conventional wisdom suggested that the 'right' financial advice was to buy your home as quickly as you could. Many of us assumed that buying a house was the first step on the escalator up to financial success and security.
We now realize that home buying can also be an escalator ride down if housing prices fall. Financial security can also be jeopardized by adjustable mortgages with rates that go up, job loss or insecurity, rising property taxes or any of the many unforeseen expenses associated with home ownership.
Just as the old real estate saying emphasizes 'location, location, location', whether to buy or rent, depends on your personal situation. Some, but by no means all, of the factors you should consider include:
How long do you think you will live in this location?
How much cash do you have to put down on the home?
Do you have a significant cushion of case for repairs, insurance, taxes and unexpected expenses?
What are your chances of being able to sell the home if you need to move?
What is the mortgage rate, and what are the closing costs associated with the mortgage loan?
These and many other factors to consider are discussed in the Wall Street Journal cited below. Please let us know your opinion. Is now the time to buy? Or have you decided renting is the way to go?
Should Renters Jump Into the Housing Market? Is it the right time to buy a house? June Fletcher Wall Street Journal MARCH 28, 2009
The information on RentalProperties.com is intended for informational purposes and not guaranteed. Please consult with an attorney or your own professional advisor regarding your specific situation.
