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 How long will you live here?
If you are going to live here less than two years, keep on renting. The current tax laws allow homeowners to avoid taxes on the profits from selling a home, but only if you've lived in the home a minimum of two years. If you realize a capital gain on selling your home the government allows a profit of up to $250,000 for a single person and $500,000 for married persons without paying taxes on that gain. If you have not lived in the home two of the last five years before selling it, you will not be exempt from the taxes.
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 Are you relocating to the area?
If you are new to the area and want to live in an apartment for awhile before you buy, be careful where you rent. When renting for six months to a year, you will probably become attached to that area. However, when it comes time to buy, many people become reluctant to leave that area, yet the home that they want to buy does not exist anywhere near the apartment. This can create a "real estate trap." Hire a Realtor. Have them educate you on the different areas that may suit your lifestyle and on the neighborhoods that may interest you when you are ready to buy. |
If you are not financially sound do not buy a home yet. 
Make sure you are ready to commit to maintaining a home. 
If you need a tax break, owning a home can significantly cut your taxes. 
Renting is an expense while home ownership is an investment.