I get this question a lot and it’s a valid question. Heck, it’s one I often ask myself as well. Owning a home in the long term has more benefits than detriments, but with the current financial climate, you have to ask yourself:

“If I’m renting my current place for $900 a month – Am I willing to live in what $900 a month will buy me on the housing market?”

If the answer is No… keep renting.

The reasoning for that is that the extra costs of HOA (homeowner association) dues, property taxes, etc. will drive that 900 upwards of 1,000 dollars and you’ll need that additional flexibility.

In the Gilbert area, large 4 and 5 bedrooms houses rent for $1250 on up to $1500 a month. However if you search the MLS, they’re often listed at $300,000 to $400,000. Depending on your credit and how much you can put down, that often puts you in $2,000+ area on house payments. Not including future property tax assessments and HOA dues.

A commenter recently posted this link in a comment and because it’s been so useful to everyone who’s used it and gotten back to me, I figured it’d be great to repost. Thanks Ubu!

The New York Times – Is It Better To Buy Or Rent?

If you’re curious what’s out there on the rental market, I’ve had great luck with Craigslist. Click here to visit the Phoenix Craigslist house rental search. For the sake of convenience, I’ve added in details for a 4 bedroom search with images.

Check out the related posts below for some more information if you’re curious! I’m going to be writing up some great tips for saving money on a rental and also how to rent while keeping purchasing in the future, in mind.

Tags: renting vs buying, arizona, real estate, housing bubble, craigslist, calculator