We have all been sold the "American Dream" which is to own our own home. And while there are some great buying opportunities in the market right now coupled with ridiculously low interest rates, it may not make sense for you to buy but rather to rent.
- If you have substantial credit card debt, you should work towards paying this off first
- Not having the 10-20% for a down payment means that you are not ready to buy
- If you plan on moving in the next 5 years or are unsure that you will remain in the house it makes sense to rent. Selling a house is expensive with Realtor fees and closing costs.
- Run the numbers and sometimes it makes much more sense to rent than buy. There are online calculators that let you input all the data and make an informed decision.
- If you are unsure about the responsibilities of being a homeowner such as deferred maintenance on the house, landscaping, repairs, upkeep etc... then just rent!
The "American Dream: is not for everyone. Make sure you weigh all the pros and cons before jumping in and buying a house especially when some realtor tells you "it's the steal of the century."