Rent vs. Buy? Calculators Help You Decide
It’s the age-old question: should I rent or buy? Real estate markets have offered lots of reasons to buy lately, no matter what part of the country you’re in. Don’t be lured in simply by prices lower than you’ve seen in the past, however. There’s a little more that goes into the whole “rent vs. buy” equation than merely a bargain price on a home.
We spent some time poking around Trulia’s Rent vs. Buy calculator and wanted to share with you some interesting numbers nationwide:
The calculator compares the cost of renting a two-bedroom condo versus the costs of buying one in the same locale. While it might take you a minute or two to fill in all of the data, you’re going to get a pretty solid answer on what’s best for your locale. For example, renting in The Big Apple is still more cost effective ($42,000/year to rent versus $1.3M to buy!), yet is you’re in Minneapolis, you should be walking to the closing table as it’s cheaper to buy. Economists generally agree that any locale with a buy versus rent ration under 15 is a good city in which to buy, so you can keep this in mind as you use the calculator.
One final thing to keep in mind: many people choose to buy whether it’s cost effective or not. The decision is ultimately yours. If you live in an area where purchase prices are higher than the national average, the numbers might not ever work out in your favor. Then you need to decide what’s a fit for your finances. Work with a realtor and they’ll be happy to show you historic pricing and what you can expect in the current market.
We’re off to enjoy another stellar spring day here in Ridgway, Colorado. If you haven’t checked out our local events calendar, have a gander! We keep it up to date with the latest and greatest in the area and look forward to seeing you at one event or another very soon.
The Staff at San Juan Realty, Inc.
Tags: renting
