Thursday, December 27, 2007

Should I rent or buy a house?

According to the National Association of Realtors....

It Makes "Dollars and Sense" to buy a home: Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3% per year. The apartment or home that you rent for $750 a month will cost you more than $978 a month 10 years from now. The Federal Reserve Board estimates that homeowners have a net worth almost 36 times more than that of renters.

Other advantages of home ownership include:
*tax advantages
*freedom to make changes to the home
*fixed rate loan - payments will not rise over time

There are advantages to renting too:
*can be easier to relocate
*not having to deal with repairs
*no real estate tax
*renter's insurance usually cheaper than homeowners

As a real estate agent, of course my vote is for home ownership, but I can see the arguments for both sides. My biggest argument for owning a home is the stability factor - not having to worry about the landlord making you relocate.

Here are a few home ownership rates - the percentage of Americans that own their own homes:

State 1984 - 2004

Missouri 69.5 % - 72.4 %
California 53.7 % - 59.7 %
New York 51.1 % - 54.8%
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