Should You Rent or Buy

ForRent.com NATION'S LEADING APARTMENT RESOURCE Should You Rent or Buy? To rent or to buy? That's the big question for many families today. With the housing market in a dip, many people are hearing that it's a good idea to jump in and purchase a house, but it's a big decision and one that should not be taken lightly. Before buying or renting, take some time to look at the facts. FOR RENT Renting vs. Buying It's important to take a good look at both sides of the equation when deciding whether to rent or buy a home. Pros Pros A Flexibility Move when you want with Increase equity Homes count toward fairly short notice (1) your personal wealth p More funds available Provides security for for investing family (2) No maintenance responsibility [1] Cons Cons Maintenance You're responsible for the upkeep of your No equity accumulation 1 home 21 The average homeowner should budget about $3,300 annually for home maintenance (31 Less access to money 2 Possible decrease in value, no guarantees 2) Monthly payment for decades 3 Rates can fluctuate due to taxes (1%-3% of the home's market value) 141 Interest rates BUYING change 14) Home insurance costs Things like floods and earthquakes are not usually covered and will cost extra (5 Making the Big Decision There's plenty to consider when trying to decide whether to rent or buy. Here are a few tips on what to look at: Future Plans Finances If you'll be moving soon, Savings are important. Do it's worth it to rent. you have enough for a Experts advise buying down payment? (61 only if you will be in the same location for 5-7 In order to qualify for most home loans, your total years minimum. (6) house-related debts (insurance, property tax, loan payment) should not Debt total more than 28% of your income. 7 Credit card debt should be paid before you add a mortgage to the mix. 1) Responsibility Location Being a homeowner carries a lot of The average rent prices in responsibility. Not the area you want to live in everyone is ready. 9) will have an impact. Take a look: Los Angeles $1,250 HIGH LOW Chicago $1,250 Los Angeles $1,000 San Antonio $1,250 $1,150 Atlanta Chicago $1,000 Houston $1,100 San Antonio $600 $550 Atlanta Houston $425 Why You Should Rent .. Even if You Plan to Buy Time to get used to a new city/state. m [9) Find out where you really want to live. Look for the best schools. 10 Find best-priced neighborhoods. Establish stability as a family. m [9) Save up more for the down payment, eliminating extra fees. While buying a home has always been touted as the big milestone in a young person's life, that doesn't mean it's the best decision. Renting could very well be your best choice at this point. Crunch the numbers and look at all the consequences of either decision before buying or renting. Sources: [1] http://www.smartmoney.com/spend/real-estate/to-rent-or-to-buy-9687/ [2] http://www.homeloanleaningcenter.com/yourfinances/owningversesrenting.htm [3] http://www.houselogic.com/home-advice/maintenance-repair/value-home-maintenance/ [4] http://www.bluewatemtg.com/faq.html [5] http://www.usa.gov/topics/family-homes/insurance.shtml [6] http://www.oprah.com/money/should-you-rent-or-buy-a-house-suze-orman [7] http://www.salary.com/articles/articledetail.asp?part=par236 [8] http://www.ForRent.com [9) http://www.salary.com/articles/articledetail.asp?part=par241 ForRent.com NATION'S LEADING APARTMENT RESOURCE