Hey Marcy,

Ah, the good old renting vs. buying dilemma… It stirs passion, fuels conversations, always has (except maybe in the ex-USSR), and probably always will.

I'm with you on the fact that home prices are still quite high in the LA/OC area. I'm familiar with the market because like you I live in Los Angeles, and I too keep an attentive eye on it. But IMO we're nowhere near affordability in the LA metro, even after the housing market crash.

Why? Because when I see how much a given house in a tract costs for lease, and how much its identical twin next door costs for sale, the one offered for lease is still the better deal, by far - at least in my neighborhood. So why bother buying? But as you know, real estate is local - so my observation is not true everywhere in LA right now.

Still, if you're quite sure you want to spend at least the next decade where you are now and that you and hubby could easily afford a mortgage payment on a house you like without putting your family's financial future in the red, or - God forbid - tapping in your 401(k)'s, then why not becoming a homeowner? There is no right or wrong answer to your question - it depends on where you are in life, in your careers and in your finances.

Becoming a homeowner and getting an affordable mortgage allows you to build equity and that's one advantage over renting, since rent money builds no equity.

However, I do get annoyed at the "renting is a waste of money" statement. If this logic were true, then a place to live in should be cost free! Thinking like that is BS; it's like denying a modern dwelling's vital function: a home is a safe haven you come to at night; a place where you live and raise a family. It's a valuable privilege, so why on earth should this be free?

Renting can also be a smart choice. Ignore the naysayers and be proud of it.

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