Rent / own comparison is a must before deciding to buy a property. People offer a range of advice while buying a house. It is best to check for all possible provisions before opting to own a property. A house means equity and security. The earlier you buy a house, the more secure your future, but there are many intricacies involved. Rent / own comparison is necessary for all first time buyers. While buying a house it should be borne in mind to check the market trends. Before making a purchase analyse your cash position, see if you are on a strong footing. A steady cash flow is required to meet mortgage repayments, fire insurance, mortgage insurance, property tax, maintenance and other dues.

Rent / own comparison has to be made reasonably keeping in mind various factors. The cash flow options of both rent and own should be considered. After making the cash flow statement the one with more profit is considered a wise decision. The comparison is very complicated and there is no common answer to the question, as each case is different. Though, there is no generalized opinion, but still many people try to take a broad view of the situation which is not advisable. Conduct extension research before opting for a purchase. It is recommended to rent till your financial position is sound. Do not leap into a decision of buying a house just because loans are available. You have to repay loans timely or your house will be foreclosed upon. Analyse the housing market and the rental market to understand the current trends. The markets have seen a slow growth in the rentals since early 2008. The comparison is made generally by making a note of after-tax monthly payment and compares it with monthly rent.

Though, rent / own comparisons have their own advantages and disadvantages. Before deciding on rent or buy it is best to study the locality you are planning to rent or buy. Renting, seats you in an advantageous position over buying as you are free from debt. There is no worry of losing your house in case of defaulting mortgage payment. There is no need to maintain your house as the house owner takes care of all the repairs and maintenance work. Meaning you need not spend a single penny from your pocket towards the house. Advantages of owning a house are you can made necessary changes to the property, paint the walls or make changes as you may please. Equity is build in case of own property, the interest payment can be considered as forced savings. Even though buying a home means increasing your debt, but still once the debt is cleared you can treat it as an asset. Think that your rent payment goes towards paying mortgage and at the end of it you stand to gain a property. Once the property is all yours, your mortgage stops and you get extra money for other expenses. Always think twice before investing in a property, rent / own comparison can be highly beneficial if researched properly.