SHOULD I RENT OR SHOULD I BUY?

Owning a home of your own offers many advantages, including the opportunity to create an environment that is a reflection of your taste and personality, not someone else's. You can also move when you choose to move, not just when you’re forced to escape rising rents or noisy neighbors.

On the downside for some people are the expense and trouble of maintenance and upkeep. But high-quality remodeling and home improvements are a good investment in the long-term value of your home if you decide to sell it.

One of the most important benefits of home ownership is appreciation, the overall increase in the value of your home as the years go by. Owning a home not only provides you with an appreciable asset, but it also locks in the cost of shelter.

Here's how this works: According to the Bureau of Labor Statistics, renters have experienced a 3% annual increase in rents. That means that a $750 per month rental in 2003 will cost $978 in 2013. In the meantime, annual appreciation for housing has been approximately 4% per year, making a home worth $110,000 in 2003 possibly worth $163,470 or more in 2013. These figures differ region to region, but they give you an idea of the benefit of long-term appreciation.