Some excellent information by Gita Bantwal regarding why it is much better to own a home than rent one. It is also a great return on your money because you are paying down your own home, you are not paying rent anywhere, and properties historically appreciate pretty steadily.
Via
GITA BANTWAL, REALTOR,ABR,CRS,SRES,GRI BUCKS COUNTY & Philadelphia, PA HOMES (RE/MAX Centre Realtors):
Owning a home has always been the American Dream.
The recession and bursting of the housing bubble has caused concern among home buyers. Many are sitting on the fence. Maybe it is time to get off the fence and realize your dream of home ownership.
If you are one of those worried about prices declining further you should consider the following :
Prices are low and rates are low. If you talk to your accountant and find out what the mortgage interest deduction and deduction for real estate taxes will do for you, you may find it is cheaper to own than to rent in many areas.
When prices decline investors rush to buy properties. They hold on to these properties because they expect the values to increase. In the meantime they rent them out. Demand for rentals goes up when fewer owner occupant properties are sold. As demand for rentals goes up so do the rents.
If you own your own home, and get a fixed rate mortgage, your prinicipal and interest payments are constant. The taxes and insurance usually go up, but guess what ? Landlords also add this to the rental increase if you are renting..
Please note that real estate is local and a good agent can show you the rent vs buy analysis .
You may want to read ; http://activerain.com/blogsview/2547105/-1-reason-why-this-is-the-best-time-to-buy-a-home-
Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com
She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com
Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers. Information about real estate market is deemed to be correct but is subject to errors and omissions. Opinion expressed by me or others in my post and comments is not to be construed to be legal advice.
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