Can renting be better than buying?
Today’s economic conditions create opportunities for renters.
Renting gives you flexibility that you can’t get when you buy a home. That is especially true in today’s market, when quick appreciation of home prices is no longer the rule. Until recently, you could buy into a neighborhood for its amenities or proximity to your work, and if it didn’t work out for some reason, the fact that your house or condo was worth more than you paid made it relatively easy to buy again somewhere else without negative financial consequences.
Today, that’s difficult to do. While it’s true that because of the depressed housing market, there are houses to be had at bargain prices, in most cases there are tradeoffs: limited choice of neighborhood or a long commute to your job. When you rent, you not only save on the costs of property taxes, insurance, homeowner’s fees, maintenance and repairs, et cetera, you can use the opportunity to evaluate a neighborhood you like, or minimize your commute. You might even consider a rental to see whether you prefer city life to suburban, try out a school district, or to live near family or friends.
These factors, plus the fact that you may very well be able to save toward an eventual purchase in the location you determine is best for you, make renting a compelling choice. |
