Is It Better to Buy or Rent?


Is It Better to Buy or Rent?
By Scott Rogers • May 5, 2010
Lots of people who are renting have thought about buying . . . and lots of people who are thinking of buying wonder whether they should keep renting. Here's a highly interactive calculator to help you compare your options, thanks to the New York Times. Using this online calculator, you can enter in all sorts of variables including all of your up front and ongoing costs for buying as well as renting. The resulting graph shows you how long it would take for it to have been worthwhile to have bought instead of renting. The illustration above is with a $160,000 townhome purchase, compared to renting the same townhome for $950 per month. With a 5% interest rate on a 97.5% mortgage, it would take four years to be worthwhile to buy --- if home values were increasing at 1% per year. In the first three years, your annual costs would be higher for having bought. Starting in the fourth year, your annual costs would be LOWER for having bought. Longer term normalized price increases per year range from 3% to 4%. With 3% per year increases in home values, you start having annual savings each year after only two years. If you are wondering whether you should rent or buy a home, feel free to use this handy calculator, or schedule a time to meet with me and I can help you explore the pros and cons of each option. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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