Tax benefits considered but not appreciation, it will cost a little under $300 MORE per month to buy compared to rent. (If I factor in appreciation, it's a wash. Since appreciation isn't realized until the sale of the house, I'm not going to add it in.) So, initially, the cost is higher.
However, at the end of the lease term, I will have to buy and then the payment will be $275 more than the mortgage of the cheaper house and since I would be holding onto the house, that can really add up over the years.
Maybe someone can help me with this. When I went and picked out the rental, I had a fantasy revolving around H coming over after several months of not seeing me and that we would end up back together for good. The rental house is so homey/cozy that it was easy for me to picture that happening. This bigger house, is cute, but doesn't give me the oogly googlys warm fuzzies. I am having a hard time discerning whether I am attached to the rental because it was my "last best hope" for reconciling with my H or if it really is SO cute that I should pay $47K more for it and give up 200sf of space.
Me-43 H-46 M 12 yrs 7/09 T 15 2 grown kids bomb 7/05/07 H moved out 8/04/07 11/22/09 told him I quit;let's get ball rolling Mid Dec- he isn't sure he wants D End 2/2010-Starting to consider piecing