Monday, October 03, 2005

Better to Rent Now Than to Buy

Last week, The New York Times did an analysis of renting versus buying a similar apartment or house in various metroplitan markets. With respect to New York City, it seems like it is clearly better to rent unless either (a) you are very bullish on continued price appreciation or (b) plan on staying in the purchased unit for a long time.

"After five years in which rents have barely budged while house prices in New York, Washington, Los Angeles and elsewhere have doubled, renting has become a surprisingly smart option for many people who never would have considered it before.

. . .

[O]wning a home today is more expensive than renting in much of the Northeast, Florida and California. Only if prices rise well above their already lofty levels will home ownership turn out to be the good deal that it is widely assumed to be.

In Manhattan, 1,000-square-foot, two-bedroom apartments on the Upper East Side now rent for about $3,700 a month. Buying a similar apartment costs around $1.1 million, which can translate into monthly payments of $6,000 or so.

. . .

[W]hen owning is more expensive every month, buyers are betting entirely on price appreciation.

For new home buyers, prices in New York would need to rise roughly another 13 percent over the next five years for the average buyer to do better than the average renter over that span. . . . Over the next decade, the break-even increase is about 25 percent in New York . . . ."

Link:

Is It Better to Rent or Buy

5 Comments:

Blogger FDF said...

Denavir drug information is an informational resource designed to assist licensed healthcare practitioners in caring for their patients and/or to serve consumers viewing this service as a supplement to, and not a substitute for, the expertise, skill, knowledge and judgment of healthcare practitioners.

2:02 AM  
Blogger Rachel said...


tulsa oklahoma real estate Discover The 4 Step Secret To Becoming A Master Real Estate Professional
As a Real Estate Professional, ask yourself this question. . .what do you like best about your career. . .is it:

The "roller coaster" income cycles?
Wasting your weekend sitting at an open house where no one shows up?
What about manning a table at the mall or a home show for hours on end?

Chances are none of the above are the reason you became a Realtor in the first place.

Well, that's about to change. Learn how countless numbers of realtors are working less and making more.

How do they do it? Are they super duper closers? Surely they aren't any smarter than you?

Their common denominator is that they have a relentless, methodical, tireless home selling tool working for them alone.

Discover how they use that tool in 4 simple steps to generate sale after sale.

No Weekends! No Open Houses! No Floor Time!
Just make sale, after sale, after sale.
It's simple, once you have the tool.

Learn How To Get It Here. tulsa oklahoma real estate

10:06 PM  
Blogger Technovalley said...

Moving from State to State never been easier. Now with companies such as Allied, United and Certified Movers - Advanced Moving Systems . You move is STRESS FREE. New York to Florida and Boston to Washington DC has been the new trend of moving in the United State this 2010 Summer. NYC Movers

5:39 AM  
Blogger Dave Velasco said...

I think both renting and buying a house has their own advantage and disadvantage. In this case, it actually depends on the current capabilities of the person whether they should rent or not. You cannot always push someone to buy their own property, nor to push someone to rent.

New York Real Estate CE

1:06 AM  
Blogger Dave Velasco said...

Renting over buying has been one of the debates even for those new york real estate ce professional as to what is mostly or the best option - to own a house or to rent a property instead. With a lot of people having different preferences on either owning or renting out, what matters is the everyone's interest is protected and given their chances to live a safe and sound life having a shelter to stay with.

7:33 AM  

Post a Comment

<< Home