Buying vs. Renting

I will answer Kelly?s question, ?I have graduated from college this year and found a job. Since the interest rates are so low, should I buy a home or should I rent for a while?? Kelly let?s look at the pros and cons of buying versus renting. BUYING A HOME: Upside: – Tax benefits – You are building equity – Advantageous interest rates Downside: – Large financial responsibility – High upfront cost – Will need to have cash reserve for any repairs, especially if you’re buying a “fixer-upper.” And, in case you lose your job. – Low mobility ? if you need to suddenly move, you are stuck until you sell it RENTING: Upside: – Lower cost because you are not responsible for maintenance and repair – High mobility in case you have to move Downside: – No tax benefits – No potential to share any appreciation The bottom line is that as a freshly minted college grad, there is a high chance that you will need to relocate to find your dream job. Also, this is a huge financial commitment so make sure to look beyond the low interest rates to decide what makes the most sense.