Why renting may be a better option than buying

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The American Dream might not be all it is cracked up to be. Often the costs of owning a home are underestimated when compared to its benefits. If you cannot meet these requirements you probably should not buy a home…..

 

So before you buy, make sure it’s right for you. I meet too many hard-working individuals who feel pressured to buy when renting may well be the best financial option for the stage of life that they are in. In general, I say wait to buy until you can comfortably put 20% down, plan to live there at least five years, and that the purchase price is such that your all in housing costs (mortgage, property tax, insurance, upkeep) are no more than a third of your take-home pay.

Manisha Thakor (@ManishaThakor) is founder and chief executive of Santa Fe, N.M.-based MoneyZen Wealth Management LLC.

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