For first time home buyers deciding to take the plunge and buying a home can be a tough decision. Especially in today's real estate market with prices flat or declining. Here are arguments for both renting and buying.

The pluses for renting versus owning:

- Monthly costs: Renting can be more cost-efficient than owning if utilities are included. The monthly cost of owning is usually more than renting after you total the cost of mortgage, maintenance, taxes, and utilities.

-Features: Some rental apartments offer amenities that are not found in smaller condo/co-op buildings or single-family houses such as 24-hour door attendant, dry cleaners, or a grocery store. Unless you purchase in a full-amenity building you will most likely have to go off-site for some services you are accustomed to having only an elevator ride away.

-Maintenance and repairs: Renting allows you the luxury of repairing or maintaining nothing; if the air-conditioner breaks you call the manager. With owning you have to either repair the air-conditioner yourself or locate, meet, and pay a repair person.

-Mobility: Renting offers you the convenience of leaving your home when your lease expires. When owning you are tied to other persons timeline of moving when a buyer or a tenant agrees to a date, which might not fit your timeline.

The pluses for owning versus renting:

-Equity: Renting has no equity benefits. Owning provides a forced savings because part of each monthly payment is principal, which builds your equity. Potential property appreciation can also increase your equity. Note: If property values decrease in your market you could owe money when you sell.

-Control over your environment: A lease may not allow you to have pets, paint your walls red, or have a roommate. With owning you can choose a building or home that allows you to have pets, decorate to your taste, have roommates, or add a washer and dryer.

-Stability: Your landlord can increase your rent, sell the property, or convert your rental to condos and force you to move on short notice. With a fixed-rate mortgage, you can control your monthly housing expense and peace of mind that you can stay as long as you want.

-Tax benefits: Renting offers none. Owning allows you to deduct mortgage interest and home equity interest from your taxable income. Consult a tax professional for more information.

A quick apples-to-apples housing comparison:

-You pay $800 per month in rent for a two-bedroom house, which does not include heat or electricity.

-You purchase a home for $90,000 putting 10% as your down payment and borrowing $81,000.

-$81,000 at 7% interest equals a P and I payment of approximately $538.90.

-Property taxes are approximately 1.5% of purchase price ($90,000) which equals $1,350 ($112.50/month) plus $250 ($20.83/month) for homeowners insurance. $538.90 + $112.50 + $20.83 = $672.23.

-In this scenario, the mortgage payment is actually less than the rent.