Buying VS. Renting

Although very dependent on location, overall, buying a home is looking more promising than renting. According to an article on CNNMoney.com, buyers should be expecting home prices to rebound in the near future from the current depressed levels. Renters may believe that since their monthly payment is lower than a monthly mortgage payment, they are saving the difference. However, people are more likely to spend that extra cash rather than save it. CNNMoney.com describes paying a mortgage is like a “forced savings plan.” The homeowner pays their mortgage, and the balance goes down. This fact aids in proving the discussion that, even during tough economic times, buying is the better long-term option.

Read more on this article on http://money.cnn.com/2011/05/13/real_estate/rent_not_buy/index.htm.