Re: If you can afford to buy a house/condo should you do it to avoid r
CF,
The rent vs. buy decision has and always will be debated - I'm sure you can find previous threads on this topic by searching the forum.
There is not a solution that fits everyone and it ultimately comes down to the specifics of your particular situation.
The people in the homeownership crowd will tout the potential for appreciation, returns of your monthly payments through principal paydown, and the satisfaction of owning your home. The renters will reference the opportunity cost of putting a down payment into your home rather than investing it in the market, not taking on the financial risk of home ownership, the fact that you are responsible for maintenance and not a landlord, and you are not tied down to 1 location.
With a google search you can probably find some calculator or tool that can run the financials of the rent vs. buy decision, but usually the decision should be driven by your lifestyle wants/needs rather than a pure #'s analysis. I would say as a general rule-of-thumb, unless you are planning to stay in the home for 5 years or more realtor fees and closing costs will probably eat away any of the potential appreciation or principal paydown you acheive by owning a home. This would be 1 factor to consider since you mentioned a 3-5 year timeframe.
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