That's the big question for some people. With the higher prices in housing in recent years, some people feel they are saving money by renting. One way to look into this question is to figure your renting vs. buying costs over time. "Over time" is a key phrase here because how long you plan on staying in your new purchase will make a difference, as well the amount of money you put down. Another factor, among several, to consider is the rental market in your area and what it will do in the future: will rents appreciate, and by how much? To check current market rents, check classified ads in your local paper. Another way is going to the "Rentometer" link on the right column. Knowing your tax margin and current interest rates on any investments or savings accounts are other features. The longer you plan on staying in a property, i.e., 5 or 10 years, the more likely you are going to save money by buying. So try this rent vs. buy calculator now, and come back to the link on the right later as you try out different scenarios.
Long Beach, Renting
1 comment:
Thank you for sharing that tip, Julia. You know, a lot of people are turned off my housing prices but then shock upon shock they realize that over time the high prices continue to march upward. So, it may be a big layout right now, but *over time* a home purchase can make the most sense.
Besides, I just enjoy "pride of ownership" as an intangible factor!
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