To buy or rent, that is the question

As far as taxes go some states give renter tax credits but they appear to be insignificant compared to the benefits from the interest and property tax deductions of owning.

The entry costs for either side were pretty even for a while until the recent sub-prime debacle. We had 100% financing, zero down for almost anyone who had a pulse and this more than challenged the idea of first, last and security deposit for rental properties.

Zero down which was available to a low of 580 credit score, or in some cases lower, could be enhanced by having the Realtor negotiate the seller into paying for the closing costs. This made purchasing with 100% financing really "zero down". Today it has tighten dramatically and you need excellent credit to get 100% financing so in most cases it is cheaper to get into a rental than a home of your own.

Utilities are nothing to sneeze at these days. I now understand why my father constantly said "turn off the lights"! Most rentals require the renter to pay their own utilities or at least most of the utilities with water generally handled by the landlord. Rentals tend to be smaller and therefore might have significantly lower utility bills.

Some believe that because you are renting and do not have the costs of a house you have more discretionary income to invest in other things that can help you build a nice sum for the future. This is an offset to paying rent and having only receipts in latter years which doesn't help your income or net worth. I believe that the super tax benefits of residential owner occupied properties far exceeds what most people are able to do with the incremental savings from the lower rents versus mortgage expense.

I must admit that I am biased toward home ownership and have been most of my life. Once I passed the time in my life where the type of car I wished to own was my predominate thought I became a zealot in planning my first house of my own. (In reality it was the banks house with a small slice of ownership for me. Way before I knew what a mortgage was I knew that I had to buy a house for myself, the sooner the better. I rented when I was young and until I could come up with a down payment that would get me into a house. Actually I never accomplished the down payment (I borrowed my way in with a first, a second mortgage and a borrowed down payment). I had a good job and career and that was all I needed to know. That was almost four decades ago and I haven't been without a house since.

I hope this provokes you enough to get you to make the move, what ever it is, to set your life on the perfect keel for you. I'm rooting for ownership for you to really partake in the American Dream!