Renting instead of Buying. Plain and simple, renting an apartment or a house will not build equity. Your payments are not providing any financial benefit to you. Once you know you are ready to take the step into home-ownership and you are financially prepared to do so, do not procrastinate. Even if you know you might be moving or know you will eventually want a larger or newer home, buying a house now just might prove to be a sound financial investment. If you can find a home at a decent price or a home that needs a bit a work that you are not afraid to tackle, the equity you build up has the potential to provide a much-needed down payment on a home you can plan your future in.
As a prospective home-buyer who will be considering a mortgage, you will have to determine how to come up with a down payment for your new house. The standard down payment for a conventional loan is 20 percent; however, there are other loans that might be available to you, such as the FHA loan, in which you might only be required to put down 3.5 to 5 percent of the purchase price.