Our worksheet will help you determine which housing option is best for you, renting or buying.

Number Crunching

While home ownership provides security, it almost certainly doesn't give you the returns provided by equities. With history as a guide, you can reasonably expect roughly 8% annual gains on your stock portfolio over the long term. House prices, on the other hand, tend to follow the rate of inflation.

That said, home ownership has a signficant tax advantage. Married couples can earn up to $500,000 tax-free when selling a home at a gain. Singles get $250,000. For a breakdown of how to qualify for this generous break, click here.

Other Factors

Buying a house isn't strictly a financial decision. This may sound simplistic, but first and foremost you should find a neighborhood and a house that you just like.

Moreover, you should check on the sales price trends of homes in that neighborhood. If it looks like the area is declining in value, then avoid commitment: You're probably better off renting.

Finally, don't forget that even with the tax-breaks of home ownership, you will still be incurring out-of-pocket costs that you wouldn't encounter as a renter from the cost of ripping down wallpaper to repairing a leaky roof. So, before you buy, estimate how much those costs will be. After all, you don't want to live hand-to-mouth even if it is in your own home.

Still have questions? Give us a call so we can give you more information. (254) 772-8572