Now is the time to make your decision as to whether to rent vs. buy a home. The obvious reasons in the past have been the potential for income tax deductions for the interest and property tax payments when it is your primary residence. Still, check with your account to make sure your payments will qualify as deductions to be certain. Equity growth was once as great reason, but it is hard to say such a thing at this point. However, there is something you should know about this particular real estate market.

A number of areas around the country are getting to the point that rental payments are nearly the same as a fully loaded house payment (that includes principle, interest, taxes, insurance and association fees). If you also qualify for tax deductions, it is that much better for you. Interest rates are very low and that may allow you to lock in a low long term rate. Thinking about the long term, fixing your home payments makes sense. Your income should grow over time and your payments can become much lower in the future, as a percentage of your growing income. 

There is a hidden reason you should buy now. Bank and mortgage industry giants are beginning to unload massive numbers of properties not to homeowners, but to large scale hedge funds and equity funds that buy hundreds or thousands of homes at a time. They buy these REO Asset Pools at tremendous discounts and make lots of money doing it...because they hold the properties for consumers to buy at current retail rates. So once again, everyday consumers like us don't win. The big bucks are saved for the people and entities with Big Bucks who have all the buying power.

However, a small buyer can also win in tis market. As a buyer of a single home, seriously consider the Short Sale purchase. It is painfully slow and irritating to many but if you are patient, you may be able to buy a home for 10-20% below the current market rates. The bottom line is, homes are getting very affordable and when you consider rent vs. buy, a home purchase might be the best thing for you now and especially for the future. While you won't get the kind of discount the large scale investors get, there are some very good buys to be had. Agents need to manage the expectations of their clients in telling them to exercise great patience during the process.

This is a good time to put a roof you can call your own, over your head.