Generally speaking if you are planning to be at one location for more than 2 or 3 years and are willing to accept the responsibilities of home ownership, you are better off owning than renting.
Why Own? Many reasons:
(1) You control your future. You are not subject to the actions or lack of actions of your landlord. You don’t need to worry about having to move, or seeing a rent increase. You get the benefit of the improvements you make.
(2) In the case of many moderately priced homes, and with today’s low interest rates, your monthly payments, including taxes and insurance, are often less than rent, on the same home.
(3) Your interest and taxes are deductible saving you money on income taxes.
(4) Part of your payment is principal, which reduces your loan balance, and increases your equity each month, like a forced savings account.
(5) Homes generally appreciate in value at a rate, slightly higher than the inflation rate – boosting your equity – even as you sleep.
(6) The equity in ones home is the largest single nest egg for most Americans. Join the American Dream!