For first time buyers, a home purchase usually means moving from renting to owning. And there has been lots of press about the idea that rental prices are falling while home prices remain strong. This would suggest that renting is the better way to go, right? Not so fast.
The rent versus sell debate is driven but a plethora of economic factors both national and local. From interest rates, to taxes, to historical property gains, there are just too many elements to take a stab at this analysis and know what’s best to do.
My favorite and most helpful tool for this comes from the New York Times calculator. This tool allows you to slide the numbers up and down for every imaginable economic consideration, from interest rates to upkeep, and presents a clear picture as to the rent you’d want to pay to make buying a bad idea.
Of course, economics aren’t the only driving force behind homeownership, but considering the magnitude of the investment, this calculator is a great place to start.
All the best,
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