Renting vs Buying...

Lately I have been receiving more and more calls where customers are asking is it better to rent or to buy. I am sure for some of you out there reading this you are saying what a crazy question "buy."  However before you can rate the question as elementary you have to put yourself in the place of that first time buyer.

Right now the economy is unstable. Many individuals feel that there jobs may be on the line and may be weeks away from getting a pink slip. They wonder where will I live if I lose my job. How will I pay my rent if I am unemployed? "There is no way I am buying a home right now". "I will continue to rent."

Other concerns first time buyers have are..
A mortgage will be to expensive and make my circumstances uncomfortable. 
Taxes and insurance how will I pay for that? Down payment and closing cost how can I afford to pay them?

While it is true you may not have to pay for taxes and insurance while renting, or pay closing or down payment cost. You are still paying just as much or more in expenses by renting but you are watching your money sink down into a bottomless pit. Each penny, nickel, dime, or dollar is one that you will spend and never recover.

Don't follow me look at it this way...
It's time to move, your landlord or leasing office requires you to pay a $50.00 application fee for each adult if not more. If you were applying for a home loan it would cost the most $10-$35 to pull your credit report.
*If your approved for the rental home or apartment the leasing agent or landlord will need a deposit, which is usually equal to the rent and then they will also require the first months rent payment. Lets just say for a 3bed /2bath in a nice neighborhood you would pay at least $850.00 to $1,000.00. A $1,000 deposit plus $1,000.00 for the rent is $2000.00 dollars just to move in. You will be moving into a rental that you won't receive tax credits on at the end of the year, you will never own and will never be able to borrow against.
If you were moving into your own home not only would you receive tax credits, each payment you make goes toward building the equity in your home. Taxes and insurance can be paid in your monthly payment not a separate payment which makes things easier for you. When you close on a home in many cases you are able to skip a month before you first payment is due. I'd like to see you do that with a rental.

There are also great programs where $100.00 is all you would pay as a down payment (HUD). Or you are allowed to receive a monetary gift from a family member to cover the down payment (FHA).
In this market you can buy a home and pay less than or equal to the amount you pay for a rental. The combination of very low interest rates and decreased sale prices on homes make this possible.
There is still the argument of what if I lose my job how will I pay my rent? If you lose your job how long will it take for the leasing office to evict you? Or will you your landlord be willing to work with you until you get on your feet? Do you see my point?
Whether your renting or a homeowner you have to pay to stay. However, as a homeowner you have options. One option being if you fall behind ask your bank about a loan modification. Where they can lower your monthly payments and put your lates on the back end of the mortgage. Most banks will work with you to help you keep your home. A leasing office or landlord may evict you and move on to the next renter. They may also slap you by reporting it to the credit bureau to make sure you never rent in this town again.

When you own your own home you can show your creative side by decorating without boundaries. Pink bedroom with light green shag carpet feels right to you, than do it. Your backyard is yours you don't have to share the cookout area with a thousand other people. No more listening to loud music all hours of the night.

Ultimately you have to do whats best for you. If after reading this renting is still where your heart is than do what makes you happy. However, my guess is that your mind is now whirling around the endless possibilities of being a homeowner. If you have additional questions please send them to me in the comment section because your question may help someone else. That is how we build strong communities by helping each other.