Buying a House

As I mentioned earlier this year, we are going to be buying our first house this year and will be taking advantage of the $8000 tax credit. In our most recent newsletter from our apartment complex, they provided us with some renting vs. owning propaganda. It is pretty funny hearing the rent vs. buy arguments shift since the housing market challenges started.

So, I thought it would be fun to share a bit of the arguments they made for renting…

Pros of apartment renting (from apartment newsletter)
Maintenance, hassle-free living
Easy to relocate
Wealth is not tied up in a single investment
Apartments often are located near transportation, employment, retail, and entertainment
There isn’t a guaranteed tax advantage. True the IRS allows the deduction of mortgage interest, but for some homeowners, they might not be able to deduct more than the standard deduction.
Don’t have to pay for maintenance, taxes, and insurance.
Short-term home-ownership can be expensive. So if you might be moving in the near future, renting may be a better option.
While buying a house does force you to “save”, historically the returns from investing in the stock market are much greater than investing in real estate.
Apartment renting does have some perks
As a reluctant renter, I have to admit that I have enjoyed not having to deal with any of the maintenance issues. If the sink is clogged – they fix it. If the door handle breaks – they fix it. If the grass needs mowing – they mow it. They even change our furnace filter every 3 months! I know that all this is included into the monthly rent payment, but it is still a nice feature.

The ability to quickly relocate is also an added benefit – if you are a bit more of a nomad. Other than that, I have to disagree with some of the other arguments they made for renting.

Current market conditions that make it a great time to buy
Extremely low interest rates on mortgages
A lot of supply in the market with a much smaller... [continues]

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