To rent or buy? Five things you need to know about home ownership


(CBS News) CBS News economics and business correspondent Rebecca Jarvis joined "CBS This Morning" on Monday to offer potential homeowners some tips on whether they should pursue buying or renting. Here are Jarvis' five things you need to know before you take the plunge into home ownership:

How long you plan to stay matters: It takes 5-10 years to recoup the closings costs of buying a home

Location, location, location: The age-old adage holds true in this debate. In some places, like New York City, renting can be a better deal than buying, so do your research

Know about the hidden costs for both: Hidden costs of owning include closing costs, insurance, maintenance, stress. Renting costs include moving expenses and rent increases

Tax deductions are not guaranteed: Homeowner do get a variety of tax deductions, which can offset the cost of owning, including mortgage interest to property taxes. But, be aware that as politicians try to fix the U.S. housing problems, some of these deductions may disappear

Money: Know how you plan to pay and consider how much of a down payment you can afford to make and how good your credit score is. Buying may seem like a good way to accelerate adulthood but if your income could change, you may not be ready