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The question of whether buying or renting is better financially depends on lots of different things. The price to rent ratio is one of those things. I'm not s
by hsitz 10y ago
The question of whether buying or renting is better financially depends on lots of different things. The price to rent ratio is one of those things. I'm not sure what you mean by "pricing affects both equally", but it certainly is not true that the price to rent ratio in a location is fixed over time or that it is the same in different locations or cities at the same time. In areas with high price to rent ratios it is often better to rent. In areas with low price to rent ratios it is often better to buy. A basic definition can be found here:
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp?lgl=no-infinite http://www.investopedia.com/terms/p/price-to-rent-ratio.asp?...