SmartMoney contributor Jack Hough explains why he believes renting makes more financial sense than buying a home. The short version of his argument: "Businesses are great investments while houses are poor ones, so I'd rather rent the latter and own the former." The article supports that thesis with numbers, comparing the difference in value after inflation of houses versus stocks. As we work through the housing crisis and stare down the barrel of a significant economic slump, making smart money moves is that much more important, and while you may still prefer to aim for ownership despite the author's claims, it's worth knowing and understanding your options. While you're weighing those options, be sure to check out the previously mentioned Rent or Buy Calculator to help determine which is better for you. Photo by Editor B.
Renting Makes More Financial Sense Than Homeownership [Yahoo Real Estate]