Should You Buy or Rent a Condo or House? that is the Question!

The decision whether to buy a house or condo or rent a house or condo should be weighed carefully. If you are working for a company that is notorious for transferring employees every couple of years, or you plan to relocate to another town or state within the next year or two, renting a house or condo may be the way for you to go.

If you have recently relocated, and are unfamiliar with the new area, renting a house or condo for 6 months to a year is a much safer bet than taking a chance on purchasing a house or condo in an area that turns out not to be what you hoped for.

Another reason you may prefer renting a house or condo versus buying a house or condo is that if you don't care for your neighbors or decide you're not crazy about your neighborhood, you have not invested a great deal of money, and you can just give notice at the end of the lease period and move.

When you rent a house or a condo, the landlord is responsible for all repairs. If a pipe breaks, the furnace doesn't work or a tree hits the roof, you don't have to pay for the repairs, or make them yourself.

Renter's have more flexibility if they decide to make a lifestyle change. For instance, if a couple who is renting a house or condo decides that one of the parent's will stop working outside the house to stay house with the children, it is far easier to move to a less expensive rental property than it is to sell one's house. When a homeowner sells a house or condo that is a primary residence and purchases a less expensive house or condo as a primary residence, they could be assessed a capital gains tax.

One of the primary advantages of buying a house or condo is receiving a tax deduction for interest (including closing points paid the first year). The interest you pay on the loan for purchase of a house or condo is 100% tax deductible. In some cases, if you borrow against any earned equity, the interest on that loan may be tax deductible as well.