Based On Everything Happening With Real Estate Right Now I Am Considering Renting For A Few Years, What Do You Think?
While I have historically been an advocate of homeownership, I am not really sure where I stand on that today. Due to the current crisis in the housing market, there are many parts of the country where rent is so cheap that it makes no sense at all to buy.
For example, in my own local market there are 3,000 square foot homes near the ocean renting for $1,200. To buy a home like this would require a payment of $3,000 per month or more. Even with the tax benefits associated with owning a home, renting is still a better option now in much of Central Florida.
As a general rule, you should not buy a home if you are not planning on staying in it for at least five years. In today’s climate, depending on where you live, I might change that to ten years.
A great middle ground option would be to rent a house with the option to buy. This allows you to freeze the price and if it makes sense at a later date, you can take the option and purchase the home. If not, you can continue to rent.
I wish I had better news, but I believe that real estate prices will continue to drop for at least another year or two and are unlikely to increase for a few years. There are simply too many homes on the market and the downward pressure of prices continues due to the wave of foreclosure sales in most areas.
Agree or disagree, click on comments below.
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