We'd all like to live the american dream by purchasing a home. The simple fact is, not everyone should be buying a home.
Here are some factors to consider when making a move. Reasons to rent:
• Staying five years or less.
• Low upkeep costs.
• A way to try a neighborhood before buying.
• Security deposit and upfront rental fees are much lower than a mortgage down payment and closing costs.
• No risk of foreclosure.
• No property taxes. And no home insurance, although you need personal property insurance.
Reasons to buy:
• Mortgage rates are still low, and in many cities home prices are a bargain. (It now is more affordable to buy than rent a two-bedroom home in 72% of the nation's 50 largest cities, says Trulia.com, a real estate search engine.)
• Tax benefit in the mortgage interest deduction.
• Equity will start building when the market rebounds.
• Intangible benefits, such as a place to raise a family. The ability to paint and make other changes unless bound by home association rules.