Friday, May 13, 2011

Some Lessons to Learn: Rent or Buy

We do a lot of budgetary work in our law office.  It is my regular observation that many clients have obligated themselves into home ownership prematurely.

So before rushing to buy, it may be important to look carefully at some of the realities and economics of renting vs. buying.  Know the neighborhood and pricing trends, to the extent you can.  Understand what you are signing on for prior to the purchase.  In some cases, that may be condo fees and lawn maintenance, etc.

With the volatile housing market now, know the risks of buying.  Values have fallen and they may continue to fall.  Do not assume that this purchase will translate into an investment.  Market conditions have changed and could again.

See a good expert.  Good tax and financial planning is out there.  This is a big decision.  Seek opinions and understand how and why the advisor is relying on that specific opinion.  Sometimes a lawyer's input could be useful!

Rent vs. Own Online Calculator:

Article on issue:

Lee M. Perlman, Esquire

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