To buy or to rent? To rent or the buy?  Oh the dilemmas we see in the current market! 

This is a BUYERS' MARKET!!   Now is the time to buy!   

But could there be exceptions?  Well, of course!  Historically, I have told clients that if you aren't going to stay 3 years (assuming 2% appreciation per year) you should keep renting.  Then, we moved to double digit appreciation, so that you could actually make money in a one year period.    Now we have moved to a period of depreciation, so where does that put us?   My general comment now  is that if you are not going to stay 4-5 years, you might not want to buy right now, unless you lower your risk by putting 20%+ down.  However, can there be exceptions to this, as well?    Sure, so it beomes important to assess each  situation on its individual merits! 

It is actually possible to make money in this decision if you think through the issues carefully.  First, remember that the cost of renting, as always, is money going down the drain!  Two,  make sure that the rules of real estate are not being violated i.e the 3 most important things are location, location, location!!!  If you are purchasing in a great location, then the pricing is not necessarily going down very significantly.  And, a bonus, great locations lead the market when the national and regional markets stabilize!  So, you are lowering your risk by where you purchase.   Three, make sure you have not spent your last dime to acquire the property, so that if disaster does befall you,(ie you lose your job!), you have time to sell the property.   

So how is that making money?    Here is where it gets personal.  If you are highly skilled in the stock market and your money is earning you significant return, this might not be a great place to risk your money.  On the other hand, if you have cash, the amount you make or lose might be less important than having the home you want.  If you are like most people, and your stocks are not producing a significant amount of funds, having them invested in a good neighborhood, saving yourself from paying rent, and having the possibility that you can earn money when you sell is a good move.  The risk is hedged by putting a significant down payment.