Q: Shouldn't I buy a house instead? Isn't renting throwing money away?

A: Not at all. Nothing could be further from the truth.

The fact is, there are times when buying a house makes sense, but there are a lot of times when it makes more sense to rent a home. Here are a few of the conditions that might apply to you:

1. If you don't know how long you will be in an area due to things like a changing job market. Or if you might need a bigger house in 3 years.

If you aren't going to be in a house for at least 5 years, it probably doesn't make sense financially to buy a house right now (even with all the supposedly great deals out there). You'll probably spend more in financing fees and interest than you'll make if you sell a house in less than five years. It's especially true in this housing market, when most houses are actually going DOWN in value by the month.  Most of each payment in the first 5 to 10 years of a mortgage go to pay interest. You build very little equity in a house during that time. What if you have a sudden job change, or family emergency and have to move away after 2 years?  The house will not have appreciated enough to allow you to ask a price to make it sell quickly.  You might even owe more than it's worth and not be able to sell at all. That could leave you with a financial mess, which might include foreclosure, even bankruptcy.

2.  If you don't have enough cash saved up to make a good down payment on a mortgage.

For years banks were making loans with little or no down payment. Unfortunately, many of the people who took advantage of those loans have discovered the banks took advantage of them.  Most of those loans are gone, and you'll probably find that the ones that remain are not good deals for you (although they may be good deals for the bank!).

3.  What about maintenance headaches?

When you own the house (you could say the bank owns it), all the headaches and pains associated with maintaining the house are your responsibility.  What if you find the house you just purchased needs a new roof? Or a sewer line breaks in the basement?  You could be stuck with a $5,000 bill on top of your already high monthly payment.  Even small things like a leaking toilet are a hassle to deal with.  Do you call a plumber and pay the $100 to fix that tiny little leak? How do you know if they overcharged you?  Or do you attempt to fix it yourself and waste your Saturday messing with it and find out later when the game is long since over that you still have to pay someone else $100 to fix it?

A professional property management company takes care of these concerns and headaches for you. It leaves you free to relax and enjoy life. You know these issues will be taken care of in a timely and professional manner, without putting any more burden on you.