Friends and family will mention it to you every time that you are in the process of looking for a new place to live, “don’t rent, buy!” The general idea has always been that it is better to get the eventual return from your monthly payment investments than throwing rent away every month. This point still holds true except when the economy struggles and your investment isn’t such a solid choice in a new market.
When you consider the reason for the preference of buying over renting as it has always been the arguments don’t make as much sense as they previously did. In the world that was once known it was a solid argument that making payments and causing your principal to go down while your value went up was a tremendous investment. Then the housing market crashed and the value of homes across the world plummeted into the abyss.
Now the investment in real estate or the common sense of buying a home isn’t as grounded in logic as it once was. When you buy a home now, if you are approved, you are taking a greater chance than there has been in some time that your investment will lose value. As you continue to make payments and your home continues to lose value you will continue to lose on your investment.
Renting makes more sense now than ever seeing as how renting means that you have no investment to lose. Sure you are not getting the return on the payments that you are making, but you are remaining steady instead of losing money. Renting is still not a great long-term solution, but the short term benefits will make it more possible for you to get a good deal when the housing market does finally return.
While making smart and researched investment choices can still get you out of a bad purchase decision, renting may still make the most sense in the economy as we know it. Evaluating your own personal situation and your long-term goals will give you the answer that you need.