Making the buying decision Rent -vs Buying

 Begin your decision-making process by analyzing the financial aspects of home ownership.

Understand that there are many good reasons to buy which can't be measured with a calculator--your long-term security and leaving something to your children, for example.

May it suffice that we briefly direct your attention to such matters and move on. Assuming you plan to own your home for several years and can afford the payments, you'll likely be better off owning versus renting. Here are some points to consider:

• What are my reasons of owning a home?
  Do you need a bigger home? Do you need a better neighborhood? Are you speculating that prices will increase? Whatever your reasons, it helps to write them down. Seeing your reasons on paper helps create objectivity, and will help you follow through in the event you get the "jitters" later on.
  
  
• Do I have enough cash for the down payment?
  While this is certainly an important consideration, many lenders today offer zero-down and low down payment loans. However, you may still have to come up with cash for closing costs and moving expenses.
  
  
• Can I afford to make house payments in addition to making payments on my other debts?
  This is probably the single, most important question to answer accurately. Spend adequate time creating a realistic budget. If you fall too far behind in your mortgage payments or property taxes, you'll probably lose your home and any equity you might have had in it. Generally, you should spend less than a third of your gross income on your total housing expense, including principal, interest, taxes and insurance.