SHOULD YOU RENT OR SHOULD YOU BUY? Published June 9, 1997 Other Columns by Beth Kobliner Web Resources: Rent.Net: Online apartment guide representing over 1,388,000 apartment units in 50 states and Canada. Federal Housing Association FAQ: Get your questions answered about Federal mortgage subsidies. Microsurf: Mortgage rates by state, updated daily.

Many people believe that renting a home is "throwing money away" and that it is always better to buy a home. In fact, the decision is much more complicated than that. Buying has several advantages, including certain tax breaks that you may be able to take advantage of. But if you can't see yourself living in the same place for several years, or if you don't think your new home's value is likely to increase significantly, you should probably rent. Here's why: When you buy a home, you generally have to pay thousands of dollars in up-front fees, called "closing costs." And when you sell the home, you can expect to pay thousands more to a real estate broker. In other words, if you sell your house after two or three years, you may end up "throwing away" a lot more than if you had simply gone on renting. Beth Kobliner is the author of "Get a Financial Life: Personal Finance in Your Twenties and Thirties," published by Simon & Schuster in May. In 1994 and 1995, Kobliner was selected by TJFR Business News Reporter as one of the country's most promising financial journalists under the age of 30. Kobliner is currently a contributing writer for MONEY magazine and is a regular commentator on MPR's "Sound Money." She lives in New York City with her husband and their daughter. © 1997 Beth Kobliner, all rights reserved.