March 21, 2007

Better to Buy a House Than to Pay Rent?

Better to Buy a House Than to Pay Rent?  

 

That depends on when you buy, and how long you own.  Buy at the wrong time — like during the kind of buying frenzy that much of the country has just experienced — and you could well end up wishing you had rented instead.  

 

Boom market or bust, home buying has so many extra costs — from upfront “points” paid to a lender to title insurance and appraisal fees — that over the first five to seven years, a renter who invests the equivalent of a down payment in stocks could easily do better overall than a house buyer. 

 

Compounding that problem: Most homeowners move within seven years.   As the ownership timeline stretches out to 15, 20 or 30 years, however, the buyer will almost certainly do better than the renter, especially given the tax benefits of paying mortgage interest over traditional rent and the big rebate when the owner finally sells.  

 

Be sure to leave us your comment below about renting versus buying.    

 

 

If you're looking for Cumberland real estate, we can help you with your home search. We also service Lincoln, Smithfield, North Smithfield, Providence and surrounding areas, as well as many communities in Massachusettes, such as Attleboro, North Attleboro, Foxboro, Franklin and Mansfield. To begin searching for Cumberland real estate now, simply click the "Search for Cumberland RI Homes" link at the top of bottom of this page.

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