Many of us today are faced with the challenge on whether to buy or rent a home. And in these trying times, it seemed tough to answer. In addition, family and friends who have limited professional knowledge swamp us with advice that are often unreliable. Remember that it is not appropriate to "ask a BUTCHER how to BAKE a loaf of bread". While it is good to listen to them, it would still be best to keep in mind that concerns of this IMPORTANCE require an expert's opinion. Professionals can give us surefire answers to base our judgment from.

Whoever you take advice from should consider your individual situation, have experience, and be able to prove his/her point with solid evidence. In the case of should I rent or should I buy, Russell Gray (co-author of the book Equity Happens) would say "Do the math!" In other words, everyone's situation is unique and often times math is the solution to get an objective opinion (in this case, numbers) about what choice to make in the rent vs. own debate, at least from a financial standpoint.

With that being said, I'm not going to try and tell you which option to choose. I cannot possibly do that because I don't know your particular situation. I will tell you some numbers to think about and I will say that for many people, right now is an amazing time to purchase a home. You can start with monthly expenses. In the case of renting, add up your rent plus any additional fees and the utilities you must pay.

Buying your own home, on the other hand appears to be more complicated. With the help of a professional, a calculating device known as PITI are added together to determine your expenses. PITI stands for "principal" or the amount of money paid towards the principal of your loan, "interest" or the amount of money paid toward the interest of the loan, "taxes" or the property taxes to be paid, and "insurance" or that which pertains to property and/or if possible, mortgage insurance.

An easy way to see the difference between buying and renting is to compare their monthly monetary expenses. Aside from the PITI costs, owning a house comes with utility expenses and other maintenance costs such as lawn care, appliance, occasional new shingles, etc. that are usually not present in renting. With the latter, you shell out only the exact amount of money every month. Nonetheless, it is imperative to pay attention not just with the monthly operating cost but the long-term financial benefits as well.

In this case, ownership seems to be where the long-range financial rewards are. Renting a house does not guarantee a title even after years of investment. You will also notice that your rent increases as time goes by. On the other hand, the payment or main cost allotted to buying a house practically stays the same even through the years except for some such as utilities, insurance, etc. The good news is that there is a promise of equity from all the payments you have made towards the ownership of your house. In an appreciating market like ours - a wise choice can go a long way in as far as the value of appreciating our home is concerned!

There is a good chance your choice shifts according to your personal feelings and opinion. Simply put, making the best decision towards renting or owning a home involves your subjective feeling. What can be more fun than having a house you can call your own, and enjoying the independence in creating changes with it however you like it! On one hand, you might favor the side of renting if you will give emphasis on other concerns such as having no lawn to mow, or other maintenance issues.

The math is very important to look at, however, and often will put in perspective the subjective feelings you have. For example, maybe you won't think not having to worry about replacing your refrigerator in a rented apartment is a big issue anymore when you see how much extra you are paying to rent instead of own. Or it could go the other way and maybe the benefit of choosing your own paint color in your owned home seems minor when considering the outrageous property taxes and lack of appreciating home values that come along with the area you want to live in. The numbers usually don't lie and choosing the best option for your personal finances usually outweighs your subjective considerations.

Concisely, this article wants to present two major points: always consult a professional in weighing out your options and calculating your expenses; and look beyond the immediate gains of ownership or renting. The benefits from both sides will not be evident unless we set our eyes on the long range that will not be apparent on a monthly cost comparison. In a buyers market that we are in, ownership is favored over renting.

Alexandria P. Anderson is a licensed Minnesota Realtor that uses the Maple Grove MLS listings to help her clients to find and purchase Maple Grove realty and other Twin Cities properties.