The advantages of both renting and buying are quite compelling and depend largely on lifestyle.

Renting a home allows the occupant to move quite easily without much complication. The renter also is not responsible for property taxes, repairs on the home and hazard insurance. The renter can choose to negotiate a month to month arrangement or a lease of a set term.

On the other hand, many people view home ownership the most rewarding investment they can make. The homeowner builds equity in the property in several ways. By appreciation on the property due to market conditions. By years of paying down the lien on the property. Another way is making additions and/or improvments to the home.

As well as being a long term investment, the homeowner may very well also live at the residence -eliminating the need to rent a living space. Or , the residence may be a 'rental' property where the renter ends up paying a large portion or all of the costs associated with home ownership for the owner.

With the different varieties in today’s mortgage market, many renters are finding out that it is more financially feasible to buy. With 40-year mortgages, Interest-Only loans, and Option ARM mortgages being offered by more and more banks, and with tax laws favoring homeowners, many renters find that it costs little to no more to own a house than to rent.

The old adage is that the money you pay in rent is just making your landlord a millionaire. In the final analsysis of the rent vs buy argument, it is very hard to argue for rent in all but the most transient of circumstances. Even if you are not going to be somewhere too long, think about purchasing the property and determine whether you could rent it out at a later date for enough to cover the mortgage payment. In most cities, rents only go up over the long term, so a low rate fixed mortgage or alternatively a deferred interest prduct like an option ARM should keep you well ahead of the rental curve. Just remember, longer term is generally better when planning a property for rental. Also ask about balloon options.

However, if you currently struggle to make your monthly rent, you may want to review your decision to purchase a property. Just as owning property comes with great rewards, losing a property can be alot worse then being evicted from a rental. Please be sure you are ready for the commitment and responsibility that comes along with property ownership before you purchase.

If you are unsure of your ability to qualify to purchase a home, please contact me to discuss your unique situation.

Owning a home is and probably will always be the quintessence of the "American Dream". Home ownership not only provides a great sense of pride and accomplishment, but can provide significant tax savings and even reduction in monthly payments depending on your interest rate and loan type. When you are deciding on whether to rent or own your home, one of the first decisions you need to make is whether buying instead of renting is the right financial decision for you. And to be fair, sometimes renting is better for some people in some circumstances. However, in most cases, for most people, owning a home, as opposed to renting, is clearly the most prudent decision.

Second mortgages and Home Equity Line of Credit's (HELOC) are also tax deductible up to 100% of your homes value. With the HELOC you may also purchase big ticket items, use it for home improvement & even consolidate your debt.