So assuming that it’s a good time to buy, that buying is a good investment in the long run (even if there is a downturn, there will be a recovery), what is the trade off between buying and renting? Are there benefits to buying?

You probably already know the answer but the general consensus is that buying is better than renting. Even in a down market, it might take a few years to see the financial benefit of buying but in the long run buying creates wealth, increases net worth and creates tax benefits that renter don’t see. The New York Times had a great article talking about the benefits of buying. To see the whole article, click here)

To see some great graphs and hear a great explanation of  the financial benefit of buying vs. renting, check out the greatest video made by friend an colleague Stew Sweet from RPM Mortgage:

To answer the question based on your own finances, check out the Rent vs. Buy Calculator from Realtor.com