That is definitely a fair question particularly in light with all the different real estate issues across the Country. Some areas have experienced property values drop drastically and the ability to sell your house, has long been rather challenging in several markets. Buying or renting a property for your family, is sometimes a difficult decision and yet you need to furnish a roof over your head. So which is definitely the right thing for me to do? Outside of the general financial state we have mentioned, often times depends upon some personal insights and circumstances.

Fortunately for Huntsville and Madison County, we have been blessed through this general economic downturn, to not have suffered as much. That's not to say that the market hasn't taken a hit in some regard, but at the very least there's been more stability out there. Sales have been somewhat down yet rent rates and demands for good homes to rent has been brisk. In this reasonably good market, then what would be the things to consider for making a choice to buy or rent?

Often a first thought is to make a monthly payment comparison. For instance if I am looking at a property for approx. $150k using a very modest amount of initial cash, and maybe even a 0 down financing plan. My total payment could be around $950 approximately, given a 4% interest rate. Many times that same property if rented in our market, would rent for $950 or maybe more. If you're paying the same amount, without placing a pile of cash into the purchase, you are actually paying more for rent, since you don't get the advantage of the home mortgage deduction. When filing your taxes and listing your property mortgage interest on your itemized deductions section, you will likely lower your effective payment on that property to perhaps $ 750 a month. The after taxation payment really is worth an assessment. Obviously a capable Realtor could make available to you some historical perspective on property values and give you some projections for the future. As well as the advantages and disadvantages that that particular home and the general location.

Several other considerations needs to be pondered in lieu of renting vs buying. Often they're associated with one's understanding of the region. Until you're more comfortable with where you want to live you may need to consider renting for a time to determine what location works best for you. Also, your own personal finances, employment stability, credit ratings, and family needs, all play a huge part in knowing whether it is better to consider a purchase or perhaps to rent for some time. Someone that's just finished the procedures on a bankruptcy will likely need to wait no less than 2 yrs. to be able to qualify for mortgage financing. Or, if your credit scores are in the 500 range, that's another given that you will need to wait and pull up those scores to qualify for financing.

When rates are at historic lows, it does indeed make it inviting to think about obtaining a home. Those 3.5% to 4% rates are quite tempting. But don't forget, rates are certainly not everything. You need to know that it is sensible to buy. Most times, if you are able to live in the house for around 5 yrs., historically you normally emerge ahead of the game. One cannot be guaranteed anything, but with the tax break, independence of homeownership, and possibly some appreciation, it can certainly be worth the effort.

Eventually it depends on what makes sense for you personally and your family, at that time. Renting might be the perfect for you today, however getting a home at opportune times can put you ahead of the game, in just a couple of years. Whatever you decide is perfect for you, Huntsville may offer you good alternatives either way you choose.