Becoming a Successful Entrepreneur

Saturday, August 20, 2005

Rent vs Buying a Home

For some people, buying their home makes the most sense, and for others, renting is best. To determine which is right for you, you first need to determine whether you can afford to buy. Then you need to consider other factors, including the time you'll stay in your new home, the home's prospects for appreciation and taxes.
--- Quoted from BankRate.com ---

In short, my philosophy is if the monthly cost of buying a home is the same as renting then buy. I personally don't believe it is a good time to invest in real estate. Housing is way over valued. I believe that we have reached a peak where the real estate bubble is about to pop. My suggestion is to take the money saved every month from renting over buying and invest it! Take for example a mortgage payment on a house of $1200 a month. Instead, rent an apartment for about $600 and invest the difference of $600 a month into a good fund. I believe your return on investment will far exceed your return on investment if you bought a home (at the present time).

If you're still unsure what to do, do the math. Use the service provided by MSN House & Home to determine whether it is best to buy or rent.

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