Are there good reasons to rent rather than buy a home?
Many myths surround the rent-vs. buy question in the U.S. The biggest homeownership myth is that owning a home is huge tax break. If your mortgage interest and other itemized deductions do not go above the standard deduction amount, you don't get any tax advantage. Putting all of your money into your house isn't exactly the best solution to poor saving skills. On average, Americans move every five years. The first five years of a home mortgage are overwhelmingly made in interest - not to principal. If you want to invest your money smartly, do the numbers yourself or talk to a financial adviser.
Dr. Ronn Phillips, Arch.D., Bobbi Hauptmann, Architectural Studies, College of Human Environmental Sciences, University of Missouri-Columbia
Last update: Monday, May 18, 2009