Contd. from : Buy or Rent : The Cardinal Housing Dilemma

Don’t want to mow lawns, like to move around a lot or if you simply don’t like paying half your salary to the banks, renting may just the thing for you. Renting has become quite popular in the last decade primarily as we discussed due to the burgeoning gap between housing prices and rents. Lets have a look on why you should or should not rent a place… 

Maintenance and Cost issues: Rent a place and you don’t have to worry about that falling roof or the creaking door or about mowing that yard. But you May have a landlord who’s not too happy either doing these for you, take care …. 

 Relocation: If you are someone who likes to or has to move a lot, its better renting out. 

 Dig a bit: Before going for either, find out which one is better for you financially. If you can rent a place for $1500 a month but will have to shell out $5000 a month (with mortgages) for owning something similar, does it make any sense to buy?

The tax savings may look really good on the papers but they may not be enough to recoup the differences, you shoul defiitely consult a tax accountant or someone who can put things in the right perspective first. 

Credit Report and Debt Ratio: Check out your Credit Scores first, its better to wait and improve your credit score before applying for a loan as it will decide the interest rate on your loan. Also, you need to keep your debt ratio low, a high debt ratio may lead to your not qualifying for the loan.

Basically, renting is all about the freeedom that comes along with it. You have the freedom to move anytime you want, don't have to worry about the house repairs etc. The tension factor is pretty much low in a rented house.

Also, if an area is too posh and costly for you to buy a house there, it may be affordable when it comes to renting a place there. And ofcourse, you may still take out a loan and invest in things that you find promising. 

Conclusion: 

People have preferences regarding buying or renting, if you don’t, then your decision should be absolutely based on your current and future (expected) financial situations. Buying a house may need commitment over a very long period of time, are you up to it? Take your time, do as much research as you need to and rent a place in the meantimeJ.