Buy or rent? This is the dilemma facing many potential homeowners today. It seems that buying a home is more costly - and time demanding - than renting. However, if you can comfortably afford to do so, and your plan is to stay there for a while, buying a home has significant advantages.

Financially, owning a home is often promoted as a better choice than renting. In addition, long-term homeowners build equity both by paying down their mortgage and when their home appreciates in value. Many savvy homebuyers increase their equity more quickly by buying homes that need cosmetic improvements (such as decorating) rather than structural renovation (walls need moving). These minor improvements can significantly increase the value of a home over a relatively short period of time with a modest investment.

However, there are times when renting is the better choice. For example, if you are only going to be at living there for a short time and you do not have a large down payment, it makes no sense to buy. Buying would be the more expensive endeavor. If you buy or sell in a short period of time, you may actually risk your equity.

Also, renting makes good sense if you've identified the general area in which you want to live but haven't made a final decision as to the specific neighborhood. If you don't know whether you'll feel comfortable in a particular neighborhood, it may be better to rent a house or an apartment there for a while, to get comfortable with it and see if you like it.

When you are ready and if you have made your decision to buy, be sure to call one of our HomeLife
Real Estate Professionals TODAY!