Should you Rent or Buy?
Are you ready to be a homeowner? You should research to find out which path makes the most financial sense. Here are some tools from The New York Times and Wall Street Journal that will help you determine which housing option is best for you, renting or buying.
Renting Pros
Flexibility (can relocate easily)
Can invest money elsewhere (stock market)
No upkeep fees (drippy faucets, broken dishwashers, etc.)
Renting Cons
No equity
Annual rent increase could outpace inflation
Buying Pros
Tax-break: deduct mortgage interest and property taxes
Potential tax-free capital gain
Emotional satisfaction
Buying Cons
Property tax and upkeep
Mortgage costs
Less flexibility should you want to move; in very bad housing markets, you could lose principal
Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long you stay in your home. Compare the costs of buying and renting a home with this calculator from The New York Times.
Sources: New York Times and Wall Street Journal
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