3 ms·
Financially, though, the fair comparison is whether the capital invested in a house generates more rental income (from yourself) than what the capital would mak
by scarmig 13y ago
Financially, though, the fair comparison is whether the capital invested in a house generates more rental income (from yourself) than what the capital would make in equity, after accounting for property taxes, insurance, and upkeep.
Most calculations I see suggest it's pretty much a toss up at that point, and which you choose should depend on factors like preference for mobility or stability.
- dennisgorelik 13y agoIt actually depends on location. Buy/Rent ratio is much higher in Bay Area and NYC than in Arizona/Texas/Florida/Kansas/... So in Bay Area it's generally better to rent, while in mid-America it's better to own.
- deadc0de 13y agoExactly. It's fairly entertaining to play with this model: http://www.nytimes.com/interactive/business/buy-rent-calculator.html?_r=2& http://www.nytimes.com/interactive/business/buy-rent-calcula...; Basically almost anything in the bay area is not going to be profitable, in the south bay for sure.