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Ultimately, that question is
simple to answer, yes it is better to own than to rent.
Historically, homes and real estate appreciate in value. There
are ups and downs in this cyclical market, so there are better
times to buy, but buying has more potential.
The buy versus rent question;
however, is also dependant upon one thing, length of stay. If you are in
for the long haul, then much like stocks, your investment will
grow. If you are in for the short term, there are many risks.
Additionally, homeownership has
lost some of its tax incentives over the years, so there are
definitely situations when renting might be favorable to owning.
Moreover, some areas just don't
appreciate and people have a tendency to over-invest in real
estate.
Nonetheless, according to
Liz
Pulliam Weston you
can make owning more profitable than renting if you can stay put
for at least 3 years, psychologically prepare yourself for the
responsibility of homeownership, have some extra savings, and
manage money well.
For more tips to make
homeownership successful, click
here for more advice from Ms. Weston.
Top Real Estate Stories 4/25/05
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