Can buying a home be a good investment? I believe you will need to figure out what the mortgage payment is versus what the rent payment is. This is just one of the many factors in buying a home. How do you figure out what the mortgage payment is? First find a home that you would want to purchase. In this example we are going to use a home that is $100,000. This is a small affordable home that is 3 bedroom. Just enough home for your needs. Lets say buying that house gives you a mortgage payment of 745. This will need to include all the other expenses of the home. Like the tax, insurance and mortgage insurance. The rent in the area is 900 and the homes in that are are dropping in value in the area. Does this still make sense to purchase the home in a declining market. In this case its less expensive to pay the mortgage payment than it is to rent. Even if the real estate market is dropping. Now this is not the case across the board. If the real estate market is sinking faster than the titanic then I would wait.

It might make more sense to rent for a while till the market changes. But don't forget that you may still be able to buy a house were the market is better. This may be just a few blocks away or a few hundred miles away. This market could be on a 10 minute drive or a 1 hour commute. It just needs to make sense for you and your situation is. But the real estate market is dynamic. So you really need to do your home work. You really need to explore all options and make a educated decision on the the facts that matter the most to you and your family. Its hard to take advice from reading one book or reading one article from the experts. Make sure your getting your information from at least 3 sources. Because of the complex nature of the changing real estate market and your changing benefits.

On the other hand. Lets say buying that house gives you a mortgage payment of 1200. The rent in the area is 800 ant the homes in that are are dropping in value. It might make more sense to rent for a while till the market changes. But don't forget that you may still be able to buy a house were the market is better. This market could be on a 10 minute drive or a 1 hour commute. It just needs to make sense for you and your situation is. You really need to explore all options and make a educated decision on the the facts that matter the most to you and your family. Its hard to take advice from reading one book or reading one article from the experts. because of the complex nature of the changing real estate market and your changing benefits.