Buying vs. Renting

A recent article at U.S. News reports that in 4 out of 5 major US cities, it’s now cheaper to buy than to rent, which is an increase from 72% last quarter. As the summer buying season kicks off, areas that were hit the hardest by the foreclosure crisis (like Phoenix, Las Vegas, and Miami) have the most affordable housing at the moment; Detroit, among other cities, had the highest quarter-to-quarter increase in homeownership.So, what are the benefits of owning your home vs. renting it? Tax incentives come to mind right away. If you own a home, you qualify for tax breaks that you won’t get if you’re living in a space you don’t own. Also, you can treat your home like an investment, while rent payments are only going toward your landlord, not your future. It varies from person to person, and if you find yourself between a rock and a hard place, do some more research. Which one makes more financial sense—in the long run? Does renting or buying fit your lifestyle better? What do rent and monthly fees cost vs. home prices in the area you want to live in? For many who lost their jobs in the financial crisis, being more mobile during a time when many are in the midst of job searching can be a definite benefit. It doesn’t make sense to buy a house if your income or employment status is not guaranteed, or if it could change at any second. Buying a home is a major life step and financial stability is important. There are many ways to make buying a home happen, but it shouldn’t happen until you are at a point in your life where owning a home makes the most sense.