Two moderately helpful articles on the renting vs. buying debate (well, debate is too strong a word).
For some, renting is better than buying – by The Associated Press
There’s no question that owning a home is a desirable goal, and low interest rates in recent years have made it possible for millions of Americans to buy their first houses, invest in income property or trade up to a larger home. For many others, though, there are good reasons to continue to rent.
â€” Itâ€™s often easier and cheaper to rent than to buy
â€” Maintenance and repairs are the responsibility of the owner
â€” Thereâ€™s less difficulty in picking up and moving
â€” Liquidity is increased, so it should facilitate saving
“Residential real estate has relatively huge transaction costs,” says Eric Tyson, (co-author of “Home Buying for Dummies.”) of the brokers’ fees, closing costs, registration fees and other expenses associated with the purchase of a home.”
“To buy and later resell, figure it (the costs) at about 15 percent of the home’s value. That’s huge, and it means you have to stay put, ideally for at least five years, to recoup that 15 percent.”
Meanwhile, don’t let the years of renting go to waste. You’ll eventually want to buy.
Create an attainable plan to get through the door:
* Start saving for a down payment.
* Put a little more aside as your in-house fund for when you get there.
* Be realistic about what you can afford right now vs. what you want.
And remember that while a house generally is a good long-term investment, you shouldn’t look at it only from that financial point of view. This will be your home, at least for a while.
Make sure it truly is the house that makes you happy.
– From the Money Blogs