The economy is unpredictable, the housing market is hurting, and you need to move. How do you decide if you should buy a house or rent? There is no easy answer except, “That depends…..”, since many factors figure into calculating the costs and benefits of owning vs. renting.

 

                If you need to relocate quickly, then renting may be the best choice since you will need time to check out where you want to buy in a new location. However, the comparison of these two options is complex. The actual expenses of owning and renting need to be compared with all other outside influences, including the property taxes, length of time you intend to stay in the house or area, down payments and closing costs for home owners, monthly fees and security fees for renters, all of your other debt and credit monthly payments, calculating how much income you want to spend from your net pay, etc. Thankfully, there are online resources that can help with your calculations before you move or make any large financial decisions.

 

                To determine rental costs and fees, you can access the local Chamber of Commerce Web sites where you will be moving, go to online resources, such as Rentals.com, in the areas where you are interested in moving, or use the Trulia.com Web site to view local rental fees in your area. U.S. rents have continually dipped throughout the past year, and this means that in many areas you can rent more space than you could afford to buy. You also have the financial advantage of not paying for property taxes and upkeep.

 

                However, if you are planning to stay in one area for more than five years, you may benefit from purchasing property and developing equity. The advantages in owning your home include that property owners receive tax breaks, houses are selling at all time lows, you have the possibility of developing equity over time, and having the freedom to enjoy your own property. You may want to look into purchasing a foreclosure, and you can find the availability of foreclosed properties in your area at RealtyTrac.com.

 

                You can receive further help at mortgagecalculator.com for a complete list of what determines your ability and/or advantages of owning a house. Since every person has individual financial circumstances, debt, and needs, it is always good to get as much information and help as possible to make these important decisions. Check the newspapers, and bank and credit union Web sites for mortgage rates and closing costs. Check your credit ratings, and get prequalified for a mortgage to help you understand what to look for in potential property price ranges.

 

                After comparing the pros and cons of renting vs. owning your housing, you will be well informed to make the right personal choice for your needs and finances.