Renting a home makes perfect sense in our current real estate market. In cities such as Miami, Las Vegas, Tampa, Washington D.C. and others, housing prices are artificially high as a result of speculation and the availability of sub-prime loans. As a result, in my own hometown of Ft Myers, Florida, it now costs less to rent a house or condominium than it would to purchase that same home - significantly less.

I rent a two bedroom, two bath condominium, on the water, with access to the Gulf of Mexico, for $1,000 per month. This same place would cost me over double this amount to purchase, including insurance, taxes and home owner's association fees. Why would I choose to double my expenses simply to say that I own my home? The money I save can be put towards a bigger and better condo when the real estate market becomes more realistic. This may not happen for several years. In the meantime, I like living on the water at a bargain price.

Even if prices stabilize, it may still make more sense to rent than to buy. Here are just some of the reasons to consider renting:

1. If you do not plan to stay in the area for at least two years. Some areas
of the country are experiencing a depreciation in home values. If you
bought a house today, it may be worth less than what you paid for it when it
comes time to sell.

2. If you plan to marry or change the structure of your family. Don't make the
mistake of buying a home that is too small, or in a bad neighborhood for
children if you plan to get married or start a family in the next few years.
School districts may not matter to you now, but they will when it is time to
send your first born to first grade.

3. If you plan to retire and move from the area. We made the mistake of
buying a beautiful four bedroom home in a town we had just moved to after
our children had finished college and left home. We had not thought
much about where we wanted to spend the rest of our lives. All I knew was that I
loved that big, beautiful house and had to have it. After we lived in it a
while, we discovered that we used about half of the house and ended
up closing off the rest. We left the area after just two years.

Finally, if you do rent, remember to treat the home like your own. A happy
landlord can save you money on your next rental by giving a good
recommendation to your next landlord who may reduce the security deposits and
even the rent to be assured of a responsible tenant.

So, rent now if it makes sense to you, and wait to buy until the time is right.

Learn more about this author, Bonnie Garrison.
Click here to send this author comments or questions.

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