I have seen a lot of reports and information over the years about renting vs. owning.  I am here to say that renting does you no good and can have a bad impact on you in more than one way.

First of all I like to look at renting as having a job.  You go in to your job everyday hoping that you still have a place to call yours and a paycheck to collect.  What some of you have experienced in the past is that you think everything is great, then boom you are out on your butt.  Your employer doesn't need you or doesn't want to pay your high cost when they can get someone else for less money.

You can say renting is the same way.  You don't own the place you just get the pleasure of staying there.  You have no control over what you can and cannot do.  Remember that list of rules that you signed when you got the opportunity to live there?  That thing they call a lease.  Now if you thought you had control think again.  A landlord can have you out on your butt any day of the week if he wants to.  If he can prove that you didn't follow their rules to the T.  Or your lease is up and they want to raise the rent.  What can you do?  Nothing.  Pay it or find another place to live.  It is that simple.

Now let's look at owning.  Can the bank kick you out?  Yes, but not as easily as a landlord.  Does the bank care if you paint the walls?  NO.  Does the bank care about anything as long as you pay them? NO.

Now some of you may be saying I don't want to do any of the maintenance of owning a home.  I know that a lot of landlords will make you do all the maintenance up to a pre determined dollar amount, usually $100.  So if you are already paying most of the maintenance, what is maybe a couple of other expenses, if any?  You see, landlords know that most things will be under a certain dollar amount.  That is why they make you pay for it!

If a big thing comes up, most landlords have some sort of warrantee on the property that covers it.  They make you pay the deductible because it is under their pre-determined price that you are responsible for.

Another thing is that you don't get any Tax advantages.  If you could deduct most of your rental payment on your taxes, would that increase your refund?  Most likely yes.

You might be saying, well I am not a homeowner because look what is happening with the prices right now.  Yes they are leveling off or coming down a little bit.  What everyone is not focused on is how over the past 4-5 years they have been going up fast.  So a little drop isn't going to hurt if you are into the property for the long term.

Real estate is a long-term investment.  Forget about the short term.  Real estate is always a cycle.  What goes up must come down and what is down eventually comes up.

My best advice is to forget what you hear on the TV.  They don't know anything and it is there JOB to give you bad news.  That is what keeps you coming back.

Also stop renting and start owning!  If you want to own a home there is no reason why you shouldn't have one.  There are thousands of ways to own a home you just have to find one that works for you.

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