June 23rd, 2007 by George

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dontrenew.com was established for that very question.

Should I buy or should I continue to rent?

There are pros and cons to both, and only you can decide what is appropriate for you.  Let’s take a look at what some of these pros and cons are:

Buying Pros

• Historical uptrend in appreciation of real estate values
• Tax deductions provide huge incentives
• Place to call home
• Housing market set for rebound
• You are not paying someone else’s mortgage for them
• Seller are providing tons of incentives right now

Buying Cons

• Finances can become over-extended
• Risk of ownership

Renting Pros

• Rental rates typically a little lower than a mortgage payment
• Financial commitment is typically one year or less
• Risk of ownership is avoided

Renting Cons

• No chance of gaining appreciation of homes value
• No tax deductions
• You are paying someone else’s mortgage for them
• Rental rates continue to rise
• No sense of ownership

Well how do you decide which is best for you?  Its a financial decision for most people (while others may move frequently due to work, etc.).

1. Most importantly, Run the numbers - use dontrenew.com’s Buy vs. Rent calculator to decide what makes more sense
2. How long are you planning to live there?
3. What is your gut feeling?  What is your sense of ownership?

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