Monday, April 18, 2011
Money Monday: Rent or Buy?
There was a time when owning your home was the American dream, but we've all seen some of those dreams turn into nightmares leaving many asking whether they should rent or buy. Seven's Lynn Martinez has the answers in tonight's Money Monday.
WSVN -- Marie Gregorio and her family are settling into a charming 1940's house in Miami Shores, but they're not buying it.
Marie Gregorio: "We just really feel more comfortable renting for the time being."
For them renting is the way to go in a real estate market that is just still too iffy.
Marie Gregorio: "If you don't really think you're going to get your money back on that investment it's really a huge leap of faith going into that."
Realtor Robert Bourne says the decision to buy or rent is all about long-term economics.
Robert Bourne: "If you buy a home and you're young and you're raising your family, 10 to 15 years from now it's most certainly going to be a big profit for you."
But with Taxes insurance and maintenance, buying can be more expensive experts say you should consider renting if you're not confident in the current real estate market, not sure how long you'll be living there or if you don't have the cash for a big down payment.
If you don't buy you should at least invest what you're saving on down payments and repairs.
Robert Bourne: "It's a cost versus an income decision."
The Gregorios aren't sure how many years they'll be living in South Florida so for them the decision was easy.
Marie Gregorio: "Everyone want to own their own home and I think most people still feel that way. It would be nice if we could own our own home, but we just don't feel comfortable in that situation right now."
FOR MORE INFORMATION:
Your Path to Homeownership
Is It Better to Buy or Rent?