Should You Buy or Rent?
That is a good question and I think the article below can help someone determine that. I know in South Florida it is a great time to buy because prices have come down so far, rates are low, and the first-time homebuyer tax credit. I think the most important part of the article was this:
How long do you plan to stay in your home? “There are high transaction costs associated with buying and selling” a house, says Dean Baker, co-director at the Center for Economic and Policy Research, so home buyers should plan to stay put for at least four to five years.
The reasoning? The costs for buying and then selling a home — which can include a real-estate agent’s fee, a transfer fee, closing costs, and inspector and surveyor fees — could add up to about 10% of the sale price, or roughly 1½ years worth of rent. “If you average that over 10 years, it is not that big a deal,” says Mr. Baker. “But if you average it over, say two years, you’re paying an awful lot of money to own a house for a short period of time.”