Renting a home is not all bad!

We have been drilled in the American Dream, Home Ownership. Renting a home or apartment has been looked upon as a sign of “failure”. Perhaps the renters were the wise ones. While home ownership offers the potential of appreciation and tax advantages, it is offset by the cost of maintenance and the loss in value as we have experienced these past few years. It is also an asset that ties you down; moving to another part of the country, downsizing or up-sizing can be difficult if you can’t sell your home.

Renting can stabilize your budget and allow you to save for future needs. Not only in today’s market but in any market, if you are considering buying a home, buy below what you can afford. Being house poor or becoming house poor can have terrible consequences.

Always analyze what you need, and why you need it. Don’t look for instant gratification, but plan for the long term and the rent versus buy issue is a major part of that plan.