Rent or Buy a Home?

Grace K. Henry & Michael Sheehan

Physician's Money Digest, April15 2005, Volume 12, Issue 7

Another conundrum physicians face,particularly young residents, is whetherto buy or rent their home. There has beena surge in real estate purchases and prices,particularly in the past few years, triggeredin part by rock-bottom interestrates. This makes home buying slightlydaunting. In general, renting pales incomparison to the financial benefits ofowning a home. However, in someexpensive areas, renting can actually bethe better deal. To weigh the financialpros and cons, use an advanced buy/rentcalculator, such as the one at www.smithfinancialplace.com, a site created by twoeconomics professors, or use a simplerversion at www.thinkglink.com, a consumerreal estate Web site.