|
Ok I did some research on this and basically it depends on what housing market you live in.
With the overheated housing market of last few years, the cost of buying versus renting has inverted substantially.
Basically home prices jumped through the roof, and people being the sheep they are flocked to buy these homes at outrageous prices.
With low interest mortgage and lax lending requirements this has created a shortage of renters in these markets which means landlords aren't able to hike rents.
So in some areas it may temporarily be true that renting is better than buying I don't see that being the case long term.
Eventually alot of the idiots who took adjustable rate mortgages will get foreclosed, which will simultaneously put reasonably priced homes back on the market and flood the rental market with prospective tenants.
This should put rents vs mortgages back into proper balance.
Long term however, owning your own home is still the way to go for financial security. Depending on what housing market you live in, this may not be the best time to buy though.
Obviously if you're renting a place for $1000 a month, and buying the same place would cost you $2000 a month, then renting is the way to go. In most markets that isn't the case though, which is why this whole topic is making most of us shake our heads in disbelief.
__________________
sig too big
|