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Like many Nesties, you may still be renting but are itching for a more permanent place to really call your own. Or maybe you’ve already plunged into homeownership, but your new casa is less than ideal (’70s countertops, anyone?) and could use an upgrade. Change is tempting, but when is the right time? We'll help you decide whether you should jump ahead one square on the Monopoly board or just stay put.

Renter’s Journal

Kaylin & Bradley
Sherwood, OR

Moved In: August 2006
House Style: Townhouse
Setup: 2 bedrooms, 2.5 baths
Monthly rent: $995

Renting Plus: Having a pool and gym available is definitely a plus. Not having to do any maintenance around the building (yard, basic upkeep) is very nice, and we know that if something breaks in the townhouse, it's not up to us to pay for the repairs!

Renting Bust: Feeling like we aren’t actually putting our money toward anything -- in the future, we won’t have the chance to sell what we put our money into, which would've happened if we owned a house. Our rent money is just sort of “thrown away� in a sense.

Best Advice: Really look around before choosing which place to rent. We put a ton of effort into finding the best place possible, and it made us happier in the long run.

Stay Put as a Renter If...

You’ve got a three-year game plan.
It includes grad school or moving for work or family reasons. You need to hold onto a home for at least three years in order to recoup closing costs and fees.

Your super’s name is on your speed dial.
Whatever upkeep or repairs you do on your apartment now, multiply that by 100 when the home is your own.

You want a showplace, but it’s not in your budget.
Look for a luxury rental instead or keep putting money into your home acquisition fund.

The numbers don’t add up.
If your total monthly housing costs -- principal interest, taxes, insurance, and maintenance (and debt) -- exceed 42 percent of your annual gross income, stay put.

Buyer’s Journal

Olivia & Anthony
Lake Grove, NY

Moved In: November 2005
House Style: Ranch
Setup: 3 bedrooms, 2 baths
Price Paid: $500,000

Buying Plus: Freedom to create a place that reflects us, our lives, and our dream -- and equity, if we can be patient.

Buying Bust: Getting rid of leaves in the fall, especially because our neighbors have large trees on both sides of the house!

Best Advice: Find a decent house in a good town rather than a brand-new house in a not-so-good town. Make sure to budget for home improvement and maintenance costs. And believe it when you hear other people say that there are endless projects to be done around the house.

Consider Buying If...

You can afford it.
If the mortgage payment on your target home, insurance, taxes, car payments, and student loans are less than 36 percent of your gross monthly income, it’s a good signal to mortgage lenders that you’re not drowning in debt. Go to yourmortgagecalculator.com to estimate what your monthly payments are likely to be.

Your credit is good.
Run a check by going to annualcreditreport.com.

You have enough for a down payment.
The gold standard is 20 percent, but 5 or 10 percent will do. If you’re desperate to buy, check out 0 percent-down loans. But watch out: If home values drop, you could end up owing more than what the house is actually worth.

You have an emergency fund.
If you’ll have to empty your bank accounts to buy a house, wait until you can build up a cushion of three to six months’ worth of living expenses.

Owner’s Journal

Maribeth & Erik
Minneapolis, MN

Moved In: July 2005
House Style: Tudor-style duplex
Setup: 2 bedrooms, 1 bath
Price Paid: $10,000

Reno Plus: We were able to start with a blank slate, which was great because we could envision what we wanted each room to look like and make it happen.

Reno Bust: We moved in as we were updating and renovating. So for a few months, we were living in the chaos of it all.

Best Advice: Be sure to listen to each other about style, money, and the process and plan of renovating your home. Like many parts of a marriage, working on your home is a joint effort and an exercise in compromise.

Renovate Rather Than Move If...

Renovating would be more economical.
Your renovation’s total cost divided by the current value of your home should equal no more than 20 percent. If it’s higher, it might be more cost-effective to move.

You’d rather stay put.
The thought of packing all your stuff up again makes you want to scream.

You’re comfortable with chaos.
A major renovation can take months, and you’ll be living with sawdust, noise, and strangers traipsing through your home.

by Betsy Wiesendanger
2/12/08

See more: buying a home, Real Estate, Renovating