Should You Buy Before Rental Prices Rise?

Despite depressed housing prices which are lower than we’ve seen in years, many Americans continue to rent. But could they be making a move which will negatively impact their finances in the long-term? According to a report released by the National Housing Council, the cost to rent has rising in 89 percent of the housing markets around the country.
    
  
   

As more Americans depend on apartments because of changing family structures, and attitudes towards housing, rental prices are expected to continue to rise as landlords struggle to meet demand.  But it’s not just the cost of renting that should be a concern for those thinking of forgoing a home purchase; below are a few of the benefits that renters don’t receive:

1. The ability to build equity.  Yes, the housing market is down right now; but over the long-term those who own homes are able to build wealth as the property increases in value above and beyond what they own on their mortgage.  Renters will never be able to build equity like owners.
2. Tax write-offs.  Homeowners are able to write-off mortgage interest and local property taxes in accordance with the IRS code. Renters cannot write-off any portion of their rent, while the landlord continues to get the benefit of the tenant’s timely payment.
3. Stable monthly payment.  Homeowners can depend on paying the same monthly mortgage until the loan is paid off, unless of course they have an     adjustable-rate mortgage. Renters on the other hand face rent hikes and even eviction of the landlord decides to sell the property.