Four considerations in buy versus rent decision
April 22, 2013
Four considerations in a buy versus rent decision
Cost – Generally speaking, renting is cheaper and has lower barriers to entry than buying a comparable home in the same neighborhood.
On the other hand, apartment rents are on the rise, historically low mortgage rates and depressed home prices have made buying more affordable, and appreciation is a possibility, if not a guarantee.
Time line – If you're planning to move within a few years, you might not want to incur the costs of buying a home. But if you intend to stick around, buying can make more sense.
The decision should be a personal one, and old rules of thumb — that you should buy if you plan to stay more than five years, for instance — no longer apply.
Flexibility – Not only could buying a home limit your ability to cut your housing expenses, you may not be able to pursue housing opportunities farther away if you get transferred or lose your job. While the market is now improving, selling a home has been especially difficult in recent years.
Readiness for ownership – Many people enjoy keeping up their homes. Yet home repairs, landscaping and occasional improvements are costly and time-consuming. Many people buy fixer-upper homes that they perceive as good values, only to realize later that they don't have the time or money to make the upgrades.
—Courtesy MSN Money
Consideration of these factors should bring you closer to making a wise decision regarding ownership versus renting.
-Source: MSN Money
Recommended Stories For You
Trending In: Business
- Meet your merchant: Innovation in business — Grande Wood Designs to share retail space with Beam “Easy Living” Center
- Utterly delicious: Nevada City’s Wheyward Girl Creamery teaches customers how to turn milk into cheese
- Are commercial condominiums good investments?
- ‘Peeps’ networks Nevada County
- Stella’s to fill void by vacated Las Katarinas restaurant
- Nevada County Police Blotter: Naked man walks into business and proposes to employee
- Fire devastates Burgee Dave’s at The Mayo in Camptonville
- ‘Family of the year’: Fowlers honored by the Nevada County Fair
- Man convicted of making lewd acts toward a child, seeks new trial
- Nevada County marijuana community advisory group learns about state pot laws