Buy or Rent?!?!
Date Posted:
Monday, November 17 2008 12:12 PM
That is the question for many people these days. The buzz continues to be that now is the best time to buy in maybe 20 years. The latest Economic and Market Watch Report from the Regional Multiple Listing Service (R MLS) certainly supports this notion and is reporting a very strong buyers market in all 12 metro county market areas.
A good place to start when making a buying decision is to look at the cost of renting versus buying. Below is an example comparing renting versus buying at five price levels.
| Purchase Price | 6% Loan | 7% Loan | 2 BD Rent | 3 BD Rent | 4 BD Rent |
| $250,00 | $1,500 | $1,663 | $900 | $1,200 | $1,375 |
| $225,00 | $1,350 | $1,497 | $900 | $1,200 | $1,375 |
| $200,00 | $1,200 | $1,330 | $900 | $1,200 | $1,375 |
| $150,00 | $900 | $998 | $900 | $1,200 | $1,375 |
| $100,00 | $600 | $665 | $900 | $1,200 | $1,375 |
Check out the Owning versus Renting Calculator to make your own calculations.
Comments
Posted by minnesota real estateNov 22, 2008 7:04 PM CST
What an outstanding buying opportunity that exists here in the MN real estate market!