Chicago Foreclosure Attorneys Are Being Asked, Is Renting More Profitable Than Buying?

23-Feb-2012 With the recent decrease in home values many Americans are left wondering if it would be wiser to rent their home rather than own it? Home ownership comes with the price of home insurance, property taxes and general maintenance costs. When you rent your home those expenses are the responsibility of your landlord.

In Chicago, foreclosure attorneys are watching homeowners lose any equity they have built over the years and any down payment they put down. A recent article in Yahoo! Finance suggests that for some people renting is actually a better investment than buying. 

It is often the people who buy a home that is on the higher end of their budget that end up needing the services of a foreclosure attorney in Chicago. When homeowners don't have a reliable savings account, adequate retirement account and are unable to save money for their children to attend college, they are more likely to struggle trying to stop foreclosure.

Making the decision to invest in a home should also include budgeting other life costs including saving for the future and for an emergency.

According to the article in Yahoo! Finance, someone who bought a home for $200,000 in 2004 would need to sell that home for $395,404 to even break even on the years of expenses such as taxes, insurance and maintenance costs.

However if you do plan to stay in a home for a long period of time even breaking even is better than paying rent to someone else for 10 years. It is definitely not financially beneficial to buy a home and then move after 2 short years. 

Ultimately each real estate decision has to be made by an individual. Your Chicago foreclosure attorney will tell you that there are a few things to consider before buying a home:

1. Can you afford your mortgage and home expenses and also save for the future and emergencies?
2. Do you have secure jobs and job opportunities that will ensure you can stay in the general area of the home for a long time?
3. Do you want to take on the responsibilities of owning a home?

If you can answer yes to all of these questions, than homeownership is likely a good choice for you. The bottom line is that investing in real estate is not the guaranteed investment that it once was and you need to evaluate your personal situation before buying a home.

Chang and Carlin 
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.