Renting Houses VS Home Buying During Downturn
Depending on your future plans, renting houses might be the best option for you.
There are several reasons why many experts are saying this. For starters, there is currently a large inventory of existing as well as foreclosures for sale which could mean that the housing market will have a long way to go before it stabilizes. Building home equity is actually something that looks impossible right now especially with the depressed home prices.
Choosing to live in a rental property instead of investing in a home actually makes a lot of sense for many individuals. It is really more attractive for those who have been considering relocating, retiring or just downsizing.
On the other hand, if you have just started a family, likes a particular neighborhood and employed securely, buying a home might be a better idea — only if you have considered the total ownership costs. After all, you might have trouble recouping the money you will have to shell out for down payment and closing cost as well as property taxes.
There is also the question of home value appreciation. Again, considering the condition of the housing market, there is a huge possibility that you will not enjoy home equity.
If you are still leaning on home ownership, one of the ways you can play it safe is by digging deeper and doing plenty of research on the particular area you are interested in. Check the incidence of foreclosure and home vacancies, mortgage delinquency trends and shortage of housing units.
But keep in mind that even if you do your homework well, the old belief that owning a home is a risk-free investment is no longer true. This has been rebutted when the housing market collapsed under the weight of the mortgage mess and economic recession.
If you do decide on renting houses, you should not be embarrassed especially if you are having financial difficulties. Instead of using your money for buying a home, you can use it to pay off your debt or put it aside for retirement or emergency. In any case, it will give you a chance to recover from any financial problems.
