Good post. NEVER, EVER borrow money from or lend money to family or friends. About 75% of all life's problems could be avoided if people would follow this advice.
And if someone is holding a grudge about $20.00 they lent to a friend way back when, they need to get over it. Twenty dollars or less should just be considered a gift, even if you don't let the borrower know it. Life's too short.
But, again, no problems to begin with if you NEVER, EVER borrow/lend money. Just don't do it.
The benefits for me outweigh the cost of the membership. It depends on how much of an item you buy. For example, my father and me split a membership. He use there photo department for photo developing (he develops a boat load of photos), and I use it for misc things. But the savings on just photos (8x10's being in the 3-4 dollar range at the local stores vs $1 something) pays for the membership. Also when your a warehouse club member, look for misc things that would save you money. An example would be, It would cost me $20-30 at my auto dealership to get a tire patched. I got a slow flat on a Sunday (dealership isnt open on Sunday) and got my tire fixed for free at the warehouse club. Also some do the food sample thing and you can practically get a free meal out of a trip on a Saturday afternoon.
My biggest stress at the warehouse club is the line getting out of the store, with only 1 man and a highlighter, going through everyones things.
our Costco membership has, in fact, saved us a bundle.
it helps that we live in a 4k sq ft house, and tons of storage space.
there's a good chance we'll be buying flooring through there, as well as our next mattress. my partner used their vehicle finder service when he bought his truck. i used their travel service for our vacation last year. DVDs CAN be cheaper through the store, depending on what we buy. vitamins? significantly cheaper.
when we first started shopping there we'd make a list with grocery store unit cost so we could easily determine where our money is best spent. now that we shop there regularly, it's almost shocking to see what prices are at a regular grocery store.
When I was single, it was certainly a waste of my membership fee. But when I was single, I also had a lot of disposable income, and wasn't looking to be so frugal. Now, with a family, and a chest freezer in the garage, it was a relatively good deal, before this recession hit. After it got bad enough for a couple of misguided bailouts, we found that some local grocery stores were dropping their regular prices below the warehouse stores. And we also found a shop that caters to local restaurants, so while quantities are still warehouse-sized, the price and selection is much better, and no membership is required.
We make up our savings through movie tickets--a regular adult ticket here is $12.00; we can get a pair at Costco for $14.99. So our membership pays for itself after about five movies. Other than that we're really selective and only buy things we use very, very frequently. Right now we live about eight blocks from Costco; I'm not sure if the cost savings would be the same if it were a long or difficult trip for us.
I'm a single guy and Costco is definitely worth it for me. I do have a decent amount of storage space, but I don't have a separate freezer or anything like that. I just shop fairly regularly. Things I use a decent amount of are always there and cheaper than smaller quantities at the grocery store. Also I go at off peak times. For Albuquerque 30min before closing the place is empty, I take about 15min grabbing everything on my list making a big loop around the store and then checkout takes like 5 minutes. But I do have to say that as you get more frugal and consume less that memberships start making less sense. Here is my strategy to make sure it works.
Only buy things that are a better deal than elsewhere, Don't buy anything so big that the waste negates the price savings, Use often enough, go during off times (there are no samples at these hours) and keep a list for what you need.
my last trip included:
2lb of cheese, 30ct tortillas, 2 loafs bread, 5.5lb sirloin, 1/2 gallon salsa, 1 bag stirfry veggies, 18ct eggs, strawberry jam, 3lb lunch meat, 2 gallons of orange juice, 2 steel water bottles, 1 bottle of wine.
We love Costco! Granted, our membership is part of a business membership, so we aren't personally paying the fee. However, even if we were, we would more than make up the cost even as a family of 2.
Here's how:
1) Costco AmEx cash back: we earn rebates far and above the cost of membership by this alone (and yes, we pay off the balance in full every month).
2) Food court and samples: A hot dog & soda is $1.50. This is our super cheap date night meal out - $3 total for both of us! Samples usually provide appetizers and dessert and we have fun.
3) It's close to our house and easy to stock up on staples at the same price or cheaper than our discount grocery store. Frozen chicken, beer, soups and cheese are our best bets.
I don't really care if I would save money (and as a single person with limited storage space I likely would not) - I just hate costo. The shelves are too tall, there are too many people, and I just find it distressing to be in the store.
It never ceases to amaze me when I go to one of these places how many shoppers are running around with their carts piled high with overpriced groceries that they have happily paid (via memberships) for the privilege of buying. It is shocking how many people have no idea how much things are really costing them and that they can get much better deals through sales/couponing. We have only purchased a membership when buying something like tires which we have researched and determined might be a much better deal and make it worth the cost of the membership. I also occasionally go with a friend who has a membership to buy certain things like Parmesan cheese that might not be available in bulk elsewhere.
I don't have a ridiculous amount of space, either - but some of the programs offered at the stores more than make up for the price - Costco's car buying program saved me several thousand dollars on a new fuel-effocient car.
For big-ticket items and meat, I think it's tough to beat the chains. For everything else, YMMV.
We have a good degree of storage space available in our home, and a standalone freezer. This helps make sure that nothing we buy goes to waste.
There's only a small window during which the store generally feels too crowded for us. Add in the fact that our Costco is 10 minutes from the house, versus 5 for a grocery store, and we're not really having to expend any effort to take advantage of the store savings.
One of the tricks, though, is that you really need to convert to buying darn near everything there. Apart from some very specialized items or emergency supplies, we try to buy everything at Costco.
I am not sure if it saves us money or not, but I think we come out even at the least. If we had kids, it would be easier due to diapers and things like milk that we just don't use much now. Being able to freeze things like chicken and fish and buy other things in bulk definitely makes my life less stressful and Costco has great selections of cheeses that I can also freeze into small sizes. Plus their gas is cheaper than other places as well. I think the time-savings alone is worth something as I can go to the store less often this way. However, I only go at off hours because otherwise the shopping experience is awful. Here it is not too bad during the day on weekdays.
We made up our warehouse store membership on diaper savings for a year, and I said I'd quit when my son was all the way potty trained.
Well, now he's only wearing a pullup at night and a giant box of diapers lasts us 3 months. I think even if he's not quite out of them when our membership comes due, I'm done - the rest of the store doesn't save us money.
I meant to say that as a single 38-year old a while back, I put down 45% in cash becus i was afraid of losing the house. That was about $95,000 on a house i bought for $209,900. I'm sure glad i did it that way becus i'm still single and i have never had anything but a modest, even low, salary, from making as little as $50K about 4 years ago to a high of $85K 10 years ago. Better to be safe than sorry.
For myself and many others in sex industry, whether full-time or moonlighting on top of a conventional career, it IS a relevant issue. Most smart sex workers I know pay their taxes but do worry about legitimacy of income they show, especially in case of an audit.
I'm currently renting a room for 400 a month. My income is about 26k a year but the banks only count my main source which is 24k a year AND I have a 407 dollar a month car note. Despite my limited means, I've built a credit score of over 740 in less than 4 years.
I'm also a Veteran so qualify for a VA loan, already pre-qualified for a home mortgage of up to 55k. In Florida you can actually buy 1/2 a duplex. Finding homes in my price range that will meet VA guidelines is difficult but not impossible. A VA loan means no PMI and I find I can buy a 2 bedroom 1/2 duplex for 48k.
the monthly mortgage payment including taxe3s and insurance will be about 400 a month. There will be the increased costs of utilities and maintenance (I can do most of the labor myself!) But I can rent out the extra bedroom and this will actually cut my monthly housing costs. Every situation is different. In my case I should be able to make an extra payment on the principal for the first 10 years and still get a sizable tax deduction. There is also a large Hospital and research facility being built within 5 miles of this location so with any luck I should be able to rent that place out for a serious positive cash flow in at the end of those 10 years and use that equity as collateral for another home loan.
The reason I'm sharing all this is to show that taking advantage of the current housing market CAN be extremely advantageous. I'm also willing to put up with sharing my space to further my financial goals. Just make sure you understand what you're getting into before making the decision lightly. Thankfully I have an emergency fund that will allow me to survive for 3 months with no income or up to 15 months without collecting rent on the spare bedroom.
Have you considered buying a house that would allow you to rent out a part of that space? Is the area you are considering buying one that looks to have a better than average chance of appreciating? Those are just 2 questions that shaped my decision. Your considerations may also include commute time, area schools (My daughter is grown and lives in another state) and others. Make sure you make a list of ALL the pros and cons before making your decision!
I did everything WRONG 28 years ago ! and I would do it again in a heart beat.Interest rates were 18-19%, home inspections were rare, we had no savings-no money of any kind and no one to help us.Now at age 55 we are almost debt free, house paid off at age 50,paid for daughter's college(undergrad and 1st masters) wedding paid, house done alittle at a time over the years.We are happy and sane(sort of) what I learned about myself along the way was ....you guessed it humbling.And owning a house hmmm I don't know but owning a home..........PRICELESS
I plugged the numbers in, and it turns out, that contrary to what everyone says, buying a house is more expensive than renting, at least in my situation.
If you are looking to buy a house based on financial reasons, use a calculator. If you want a house for emotional reasons, there is no way that higher costs will convince you that it is not a good financial idea.
By the way, if you are looking at a condo in Chicago proper, remember that condos there come with HUGE association fees.
There is nothing more rewarding than owning a home MORTGAGE FREE. No stress of fees, crazy mortgage bills every month, or praying to god that you have enough money to pay that bill every month. Forget all the taxes and mombo jumbo that you would get back, and this other "money back" mess i've been reading from some of these posts. Everytime I read that i'm thinking to myself "these poor ppl are just money hungry and greedy". FYI if some of you didn't know, in the end you will actually be paying back way over the value of the house when/if you ever finish paying off your mortgage. When you pay cash, you actually have more of an advantage in trying to negotiate a lower price for the home! So if you have the money to pay for the house in full DO IT! It'll be worth it in the end.
Agreed - this isn't going to work for every home break in even when you are present, but how many home break-ins are NOT by professionals who are good at casing a house? How many are done by teens thinking they can get in and out without being heard in the middle of the night? The point is if you don't have other means (alarm system, gun, dogs), this COULD be the thing to scare of someone who breaks in or is in the process. It's a useful tip for some, but true, it won't work everytime. Just as a dog won't work everytime - a good thief will figure out how to sedate or poison the dog if he wants to get in. As for the gun, well, I am guessing that is the best, but on the rare occasion when it doesn't work, and I suspect it's rare, (i.e., it is taken from the homeowner and used against him), the consequences are much more devastating than theft.
We live in a housing included with work situation. Eventually this will end and we will have to consider our options. Buying usually involves purchasing appliances, lawnmowers, weed killer, stuff like that. It always involves upkeep. All those nit picky things are included with any decent apartment rental.
Another strategy for home ownership is to purchase a much smaller place and gradually upgrade. Or start with a less conventional space. Artists living in converted factory lofts come to mind. (I've known at least five.) A Pittsburgh cousin was able to purchase her first home, a small storefront, because of initiatives geared towards artists, (to jump start the neighborhood gentrification process). She lived and worked downstairs, and rented the top floor. I know another couple that live in an old schoolhouse. Since you're near a big city, do you have similar options?
My hubby and I are in the same boat you are and we are going for the house. The tax credit will add to the emergency fund and the mortgage, taxes, all that stuff is LESS then we pay in rent. Plus, I can't leave where I rent anymore because hubby is not allowed to park is vechicle there-and has to work.
As long as you go for with a sound plan and backup plan-as well as not buying a house over your head it is a good time to buy. We chose the price based on if one of us loses a job we can still afford on one income.
You made a good call not buying the house, since it would raise your expenses considerably & wipe out your savings.
We bought our house 13 years ago for 3% down ($2,400 on an $80,000 house). I'd do it again in a heartbeat. We refinanced twice to get the interest down & get rid of the PMI and were able to reduced the term at about the same payment each time, so it'll be paid off in about 11 more years (without paying ahead).
The increased monthly expense and fixing things that break are what will wipe you out. If you lose your job you could lose your home whether you rent or own. Ending up upside-down in your house is only a problem if you're trying to sell it. If you plan to stick around for a while and can find a great deal on a house you like that won't make your monthly expenses too onerous, buy it. But leave some money in your savings account, because you're going to need it, and make sure there will still be money in your monthly budget to be able to keep putting some away.
There are several factors in play now that make it very attractive to buy a home; low interest rates, lower prices due to the housing bubble in some areas; and the $8000 tax credit. Of course, you have to own a home and should expect to live it in for at least 5 - 7 years. If you only expect to be in a home for a couple of years, then rent.
Buying a home does one thing for you that renting cannot do, it fixes your monthly housing expenses with a fixed rate mortgage. Taxes and insurance can change but the primary component of the monthly mortgage payment is now fixed for 30 years (and then it's gone).
Don't overbuy on the home and put 10% down keeping the other 3% for cushion and emergency funds. The PMI will drop off when the loan is less than 80% of the home value. You can reach this by pre-paying the principal and/or home appreciation.
If you are planning to live there for more than 5-7 years, then buy a home.
Good post. NEVER, EVER borrow money from or lend money to family or friends. About 75% of all life's problems could be avoided if people would follow this advice.
And if someone is holding a grudge about $20.00 they lent to a friend way back when, they need to get over it. Twenty dollars or less should just be considered a gift, even if you don't let the borrower know it. Life's too short.
But, again, no problems to begin with if you NEVER, EVER borrow/lend money. Just don't do it.
The benefits for me outweigh the cost of the membership. It depends on how much of an item you buy. For example, my father and me split a membership. He use there photo department for photo developing (he develops a boat load of photos), and I use it for misc things. But the savings on just photos (8x10's being in the 3-4 dollar range at the local stores vs $1 something) pays for the membership. Also when your a warehouse club member, look for misc things that would save you money. An example would be, It would cost me $20-30 at my auto dealership to get a tire patched. I got a slow flat on a Sunday (dealership isnt open on Sunday) and got my tire fixed for free at the warehouse club. Also some do the food sample thing and you can practically get a free meal out of a trip on a Saturday afternoon.
My biggest stress at the warehouse club is the line getting out of the store, with only 1 man and a highlighter, going through everyones things.
our Costco membership has, in fact, saved us a bundle.
it helps that we live in a 4k sq ft house, and tons of storage space.
there's a good chance we'll be buying flooring through there, as well as our next mattress. my partner used their vehicle finder service when he bought his truck. i used their travel service for our vacation last year. DVDs CAN be cheaper through the store, depending on what we buy. vitamins? significantly cheaper.
when we first started shopping there we'd make a list with grocery store unit cost so we could easily determine where our money is best spent. now that we shop there regularly, it's almost shocking to see what prices are at a regular grocery store.
When I was single, it was certainly a waste of my membership fee. But when I was single, I also had a lot of disposable income, and wasn't looking to be so frugal. Now, with a family, and a chest freezer in the garage, it was a relatively good deal, before this recession hit. After it got bad enough for a couple of misguided bailouts, we found that some local grocery stores were dropping their regular prices below the warehouse stores. And we also found a shop that caters to local restaurants, so while quantities are still warehouse-sized, the price and selection is much better, and no membership is required.
We make up our savings through movie tickets--a regular adult ticket here is $12.00; we can get a pair at Costco for $14.99. So our membership pays for itself after about five movies. Other than that we're really selective and only buy things we use very, very frequently. Right now we live about eight blocks from Costco; I'm not sure if the cost savings would be the same if it were a long or difficult trip for us.
I'm a single guy and Costco is definitely worth it for me. I do have a decent amount of storage space, but I don't have a separate freezer or anything like that. I just shop fairly regularly. Things I use a decent amount of are always there and cheaper than smaller quantities at the grocery store. Also I go at off peak times. For Albuquerque 30min before closing the place is empty, I take about 15min grabbing everything on my list making a big loop around the store and then checkout takes like 5 minutes. But I do have to say that as you get more frugal and consume less that memberships start making less sense. Here is my strategy to make sure it works.
Only buy things that are a better deal than elsewhere, Don't buy anything so big that the waste negates the price savings, Use often enough, go during off times (there are no samples at these hours) and keep a list for what you need.
my last trip included:
2lb of cheese, 30ct tortillas, 2 loafs bread, 5.5lb sirloin, 1/2 gallon salsa, 1 bag stirfry veggies, 18ct eggs, strawberry jam, 3lb lunch meat, 2 gallons of orange juice, 2 steel water bottles, 1 bottle of wine.
We love Costco! Granted, our membership is part of a business membership, so we aren't personally paying the fee. However, even if we were, we would more than make up the cost even as a family of 2.
Here's how:
1) Costco AmEx cash back: we earn rebates far and above the cost of membership by this alone (and yes, we pay off the balance in full every month).
2) Food court and samples: A hot dog & soda is $1.50. This is our super cheap date night meal out - $3 total for both of us! Samples usually provide appetizers and dessert and we have fun.
3) It's close to our house and easy to stock up on staples at the same price or cheaper than our discount grocery store. Frozen chicken, beer, soups and cheese are our best bets.
I don't really care if I would save money (and as a single person with limited storage space I likely would not) - I just hate costo. The shelves are too tall, there are too many people, and I just find it distressing to be in the store.
It never ceases to amaze me when I go to one of these places how many shoppers are running around with their carts piled high with overpriced groceries that they have happily paid (via memberships) for the privilege of buying. It is shocking how many people have no idea how much things are really costing them and that they can get much better deals through sales/couponing. We have only purchased a membership when buying something like tires which we have researched and determined might be a much better deal and make it worth the cost of the membership. I also occasionally go with a friend who has a membership to buy certain things like Parmesan cheese that might not be available in bulk elsewhere.
I don't have a ridiculous amount of space, either - but some of the programs offered at the stores more than make up for the price - Costco's car buying program saved me several thousand dollars on a new fuel-effocient car.
For big-ticket items and meat, I think it's tough to beat the chains. For everything else, YMMV.
We have a good degree of storage space available in our home, and a standalone freezer. This helps make sure that nothing we buy goes to waste.
There's only a small window during which the store generally feels too crowded for us. Add in the fact that our Costco is 10 minutes from the house, versus 5 for a grocery store, and we're not really having to expend any effort to take advantage of the store savings.
One of the tricks, though, is that you really need to convert to buying darn near everything there. Apart from some very specialized items or emergency supplies, we try to buy everything at Costco.
I am not sure if it saves us money or not, but I think we come out even at the least. If we had kids, it would be easier due to diapers and things like milk that we just don't use much now. Being able to freeze things like chicken and fish and buy other things in bulk definitely makes my life less stressful and Costco has great selections of cheeses that I can also freeze into small sizes. Plus their gas is cheaper than other places as well. I think the time-savings alone is worth something as I can go to the store less often this way. However, I only go at off hours because otherwise the shopping experience is awful. Here it is not too bad during the day on weekdays.
We made up our warehouse store membership on diaper savings for a year, and I said I'd quit when my son was all the way potty trained.
Well, now he's only wearing a pullup at night and a giant box of diapers lasts us 3 months. I think even if he's not quite out of them when our membership comes due, I'm done - the rest of the store doesn't save us money.
I meant to say that as a single 38-year old a while back, I put down 45% in cash becus i was afraid of losing the house. That was about $95,000 on a house i bought for $209,900. I'm sure glad i did it that way becus i'm still single and i have never had anything but a modest, even low, salary, from making as little as $50K about 4 years ago to a high of $85K 10 years ago. Better to be safe than sorry.
You've said nothing about how much you WILL be able to put down. How much do you have saved up?
For myself and many others in sex industry, whether full-time or moonlighting on top of a conventional career, it IS a relevant issue. Most smart sex workers I know pay their taxes but do worry about legitimacy of income they show, especially in case of an audit.
It's nice to see this recognized.
I'm currently renting a room for 400 a month. My income is about 26k a year but the banks only count my main source which is 24k a year AND I have a 407 dollar a month car note. Despite my limited means, I've built a credit score of over 740 in less than 4 years.
I'm also a Veteran so qualify for a VA loan, already pre-qualified for a home mortgage of up to 55k. In Florida you can actually buy 1/2 a duplex. Finding homes in my price range that will meet VA guidelines is difficult but not impossible. A VA loan means no PMI and I find I can buy a 2 bedroom 1/2 duplex for 48k.
the monthly mortgage payment including taxe3s and insurance will be about 400 a month. There will be the increased costs of utilities and maintenance (I can do most of the labor myself!) But I can rent out the extra bedroom and this will actually cut my monthly housing costs. Every situation is different. In my case I should be able to make an extra payment on the principal for the first 10 years and still get a sizable tax deduction. There is also a large Hospital and research facility being built within 5 miles of this location so with any luck I should be able to rent that place out for a serious positive cash flow in at the end of those 10 years and use that equity as collateral for another home loan.
The reason I'm sharing all this is to show that taking advantage of the current housing market CAN be extremely advantageous. I'm also willing to put up with sharing my space to further my financial goals. Just make sure you understand what you're getting into before making the decision lightly. Thankfully I have an emergency fund that will allow me to survive for 3 months with no income or up to 15 months without collecting rent on the spare bedroom.
Have you considered buying a house that would allow you to rent out a part of that space? Is the area you are considering buying one that looks to have a better than average chance of appreciating? Those are just 2 questions that shaped my decision. Your considerations may also include commute time, area schools (My daughter is grown and lives in another state) and others. Make sure you make a list of ALL the pros and cons before making your decision!
I did everything WRONG 28 years ago ! and I would do it again in a heart beat.Interest rates were 18-19%, home inspections were rare, we had no savings-no money of any kind and no one to help us.Now at age 55 we are almost debt free, house paid off at age 50,paid for daughter's college(undergrad and 1st masters) wedding paid, house done alittle at a time over the years.We are happy and sane(sort of) what I learned about myself along the way was ....you guessed it humbling.And owning a house hmmm I don't know but owning a home..........PRICELESS
I live in New Orleans, and my fiancé and I were thinking of buying a house. Then I found this calculator.
http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1
I plugged the numbers in, and it turns out, that contrary to what everyone says, buying a house is more expensive than renting, at least in my situation.
If you are looking to buy a house based on financial reasons, use a calculator. If you want a house for emotional reasons, there is no way that higher costs will convince you that it is not a good financial idea.
By the way, if you are looking at a condo in Chicago proper, remember that condos there come with HUGE association fees.
There is nothing more rewarding than owning a home MORTGAGE FREE. No stress of fees, crazy mortgage bills every month, or praying to god that you have enough money to pay that bill every month. Forget all the taxes and mombo jumbo that you would get back, and this other "money back" mess i've been reading from some of these posts. Everytime I read that i'm thinking to myself "these poor ppl are just money hungry and greedy". FYI if some of you didn't know, in the end you will actually be paying back way over the value of the house when/if you ever finish paying off your mortgage. When you pay cash, you actually have more of an advantage in trying to negotiate a lower price for the home! So if you have the money to pay for the house in full DO IT! It'll be worth it in the end.
Agreed - this isn't going to work for every home break in even when you are present, but how many home break-ins are NOT by professionals who are good at casing a house? How many are done by teens thinking they can get in and out without being heard in the middle of the night? The point is if you don't have other means (alarm system, gun, dogs), this COULD be the thing to scare of someone who breaks in or is in the process. It's a useful tip for some, but true, it won't work everytime. Just as a dog won't work everytime - a good thief will figure out how to sedate or poison the dog if he wants to get in. As for the gun, well, I am guessing that is the best, but on the rare occasion when it doesn't work, and I suspect it's rare, (i.e., it is taken from the homeowner and used against him), the consequences are much more devastating than theft.
We live in a housing included with work situation. Eventually this will end and we will have to consider our options. Buying usually involves purchasing appliances, lawnmowers, weed killer, stuff like that. It always involves upkeep. All those nit picky things are included with any decent apartment rental.
Another strategy for home ownership is to purchase a much smaller place and gradually upgrade. Or start with a less conventional space. Artists living in converted factory lofts come to mind. (I've known at least five.) A Pittsburgh cousin was able to purchase her first home, a small storefront, because of initiatives geared towards artists, (to jump start the neighborhood gentrification process). She lived and worked downstairs, and rented the top floor. I know another couple that live in an old schoolhouse. Since you're near a big city, do you have similar options?
My hubby and I are in the same boat you are and we are going for the house. The tax credit will add to the emergency fund and the mortgage, taxes, all that stuff is LESS then we pay in rent. Plus, I can't leave where I rent anymore because hubby is not allowed to park is vechicle there-and has to work.
As long as you go for with a sound plan and backup plan-as well as not buying a house over your head it is a good time to buy. We chose the price based on if one of us loses a job we can still afford on one income.
Good luck to you-I wish you well!
Jen
You made a good call not buying the house, since it would raise your expenses considerably & wipe out your savings.
We bought our house 13 years ago for 3% down ($2,400 on an $80,000 house). I'd do it again in a heartbeat. We refinanced twice to get the interest down & get rid of the PMI and were able to reduced the term at about the same payment each time, so it'll be paid off in about 11 more years (without paying ahead).
The increased monthly expense and fixing things that break are what will wipe you out. If you lose your job you could lose your home whether you rent or own. Ending up upside-down in your house is only a problem if you're trying to sell it. If you plan to stick around for a while and can find a great deal on a house you like that won't make your monthly expenses too onerous, buy it. But leave some money in your savings account, because you're going to need it, and make sure there will still be money in your monthly budget to be able to keep putting some away.
There are several factors in play now that make it very attractive to buy a home; low interest rates, lower prices due to the housing bubble in some areas; and the $8000 tax credit. Of course, you have to own a home and should expect to live it in for at least 5 - 7 years. If you only expect to be in a home for a couple of years, then rent.
Buying a home does one thing for you that renting cannot do, it fixes your monthly housing expenses with a fixed rate mortgage. Taxes and insurance can change but the primary component of the monthly mortgage payment is now fixed for 30 years (and then it's gone).
Don't overbuy on the home and put 10% down keeping the other 3% for cushion and emergency funds. The PMI will drop off when the loan is less than 80% of the home value. You can reach this by pre-paying the principal and/or home appreciation.
If you are planning to live there for more than 5-7 years, then buy a home.