Is it Better To Rent? or Better to Own a Home?Home Ownership The American Nightmare? In todays real estate market of foreclosures, short sales, and declining home values, the American dream of home ownership has turned into nothing short of a nightmare for countless families. Nowadays, the question is, Is it better to rent or buy? Here are some things to consider. Good candidates for home ownership: You have good credit You understand that it takes time to build equity in a home and are willing to be patient while home prices rebound over the next few years You are financially stable (your employment and income are both solid and you do not expect to move in the next 3 to 4 years) Renting seems like a bad spend to you (you are of the mindset that you want to stand a chance of making money when you leave your place of residence) You do not mind spending time/effort /money to maintain the property You would enjoy pride of ownership You have a cash reserve for repairs and maintenance expenses (owning costs about 35% more than renting) You want to be able to decorate, paint, re-model to your preferences Good candidates for renting:(if this list describes you , it might be better to rent) You have been at your job for less than 2 years and/or you are not sure if you will be staying with your employer for at least another 5 years Your employer is struggling financially You do not have good credit You do not have a cash reserve Pride of ownership is not on your list of priorities You are not into major decorating like painting, re-modeling, etc. You are troubled by the idea that home values are low and would worry about losing money if you had to sell a home that you own. You have a busy lifestyle and would not have the time and/or the desire to spend your spare time maintaining the property Owning a home sounds like too much responsibility, worry, and hassle Markets do not go down forever. Economists are forecasting a healthy rebound of home values over the coming years. If home ownership is for you, now is a great time to buy because interest rates are low, tax incentives are available, homes are cheap, and sellers are desperate.
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