In the past the argument could be made that by renting you were just throwing money away, but by buying a home you were spending the same amount of money on an investment that would pay out in the end. This just isn?t the case anymore. In very populous areas, the coasts, its more expensive to buy right now and the prediction for the future of home values is that it will continue dropping for at least three to five years and probably wont rise much after that, if at all.
Also the costs of home ownership are more expensive than for renters, where basically your maintenance and repair costs are very limited if not nonexistent. You?ll also be paying more in insurance for a property that you own that you would in renter?s insurance. All roads are currently leading toward renting as the better choice in this economic crisis.
But if you look at things from a different angle, this is the time to get a really good deal on a home as housing prices drop. Just make sure you?re financially stable enough that you won?t suffer from current layoffs and other financial issues the country is facing. You?ve got to consider it a long term investment if you plan on making money in the end, but for just the right person, buying could be a good investment.