#Saving Money: Owning a home versus renting, when does it make sense

Owning or Renting a home depends on the cost per month and which one is cheaper in the long run. I have switched back and forth between owning and renting for the past 15 years. I am currently renting for a savings of $300-$500 per month for the past 6 years. However, we are seriously considering buying when our lease is up early next year. The cost for renting is now the same dollar cost as owning.  Therefore with the tax benefits of mortgage interest rate deduction and equity you build up in your home value; the numbers now look better for us to purchas1e.

That was not the case about 7 years ago after the housing market had crashed. At the time we sold our home, rent was substantially cheaper than our mortgage, therefore it made sense to rent. Over the course of several years rents fell while mortgages were stagnant or rising. However, slowly over the past two years home prices and thus mortage have risin along with rent and have met in the middle. So while up keep and maintenace of a home falls on the owner it has become attractive to own a home in the current environment.

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