In general, the time to consider renting is if you are unemployed, don’t know about your income generating ability, or are moving soon.

Commitment

Owning a home is a big commitment and not one to take lightly.  With that said, if you have a reasonable expectation and level of confidence in your ability to generate a certain amount of cash flow for your living expenses and you need a place to live anyway, you should consider purchasing a home.  If, on the other hand you are unemployed and don’t know if you will be able to make the rent this month, then your first priority should be to stabilize your cash flow situation.  Another reason to rent is if you think you may be moving out of the area in the near future.

Long Term Plans

In most markets across the country, at this time, banking on appreciation is not a good bet for at least the next few years.  Each region and local market will vary depending on job losses or creation and a multitude of other factors.  But if you plan on living in your community for three to seven years, it would be wise to compare renting vs. owning.

Getting a Good Deal