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1. Will you buy a house and lot today or pay in installment of simply rent? Use time value of money.
Should I Buy a Home or Just Keep Renting?
Kristin Wong
Should I Buy a Home or Just Keep Renting?
Dear Two Cents,
I’m out of debt, and I’m now saving for a down payment on a home. It’s always been my dream to be a homeowner. But lately, I read a lot of arguments against it in favor of renting. How do I know if it’s a good idea for me? Should I buy or keep renting?
Sincerely,
Hopeful Homeowner
Dear HH,
For a long time, conventional wisdom seemed to be that you grow up and buy a home because that’s just what you do. But lately, people are realizing that it isn’t always the smartest financial move. Obviously, the housing crisis has a lot to do with that—it’s made people question the standard assumption that homeownership equals financial stability.
Five Things I Wish I Had Known Before I Bought a House
Homeownership isn’t a good or bad idea on its own. It has everything to do with your own situation. Sometimes, buying a home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Here’s what you should keep in mind.
Don’t Think of a Home as Your Main Investment
Should I Buy a Home or Just Keep Renting?
The biggest argument for owning a home is that it’s an “investment.” But a lot of people overestimate the return on this investment.
People tend to believe that homes are appreciating assets, but this isn’t always true. Yale economist and Nobel prize winner Robert Shiller debates this topic openly, having crunched the numbers. He says that, overall, the housing market doesn’t have a great long-term return. It barely outpaces inflation, in fact. He told USA Today:
“If you look at the history of the housing market, it hasn’t been a good provider of capital gains. It is a provider of

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