I recently helped a couple find a home and sign a contract to purchase that home. They had been renting for 4 years at $1300. That is $62,400 in rent, and all they have to show for their money is a roof over their head and 4 years of memories.
After figuring the monthly payments on the home they are buying, they will be saving $500 per month, including taxes and insurance. The tax savings from the mortgage interest deduction and property taxes has not been figured into the savings, and will only make that amount larger. I guess this is why it is hard for me to understand why anyone would want to rent for a year before buying. Its cheaper to buy a home and sell it in a year, that than to rent one for a year. Weigh your options before making any financial decisions.
