Housing market: to rent or to buy?

Factors affecting the decision to rent or to buy depends include nature of work, interest rates, rental payments, property taxes, and income. If rental amounts equate to the monthly interest plus principle of the would be mortgage payment or is more, then it makes sense that it would be more worthwhile to purchase. Some home purchases may include additional costs such as property taxes, homeowner's association fees, and homeowner's insurance. These would be added on to the comparison to determine which option better suits each individual or family.

Mortgage interest is deductible up to a certain extent from one's annual W-2 income, so the income tax savings should be added into the calculation to determine the ultimate verdict. Furthermore, the location of the property would play into the overall value of the asset in question. Depending on housing availability in the location, property values may rise or decline and pose a risk on the standard 20% down payment required to purchase a home.