It's not an easy one to answer. Emotions, family and personal reasons all come into play in any home-buying decision. No one knows what the future holds for you, your family, your job or your finances. But we can help you understand what you're going to encounter when you embark on the sometimes-difficult journey toward the American Dream of owning a home. Let's start with some of the economic differences between renting and owning.
Many people believe that owning a home always provides a solid return on investment.
Actually, a home generally doesn't earn as handsome a return as financial instruments such as mutual funds. If you're looking for the best return on your money, you're better off investing in the stock market than buying a house. Primary homes generally don't earn the investment return of financial instruments such as mutual funds. That means you shouldn't buy solely to generate an investment gain. The graph below illustrates the stark contrast in investment return between housing and stocks over the past decade.