Steadfast Finances
A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line.
Best Cities to Rent versus Buy
Even with the bursting of the credit bubble and real estate bubble, one might rush to judgment that it’s a perfect time to buy everywhere in the USA or renting is a loser’s folly.
Wrong. Sorry to burst your bubble.
For the datamongers (like me) curious how the numbers were compiled:
The price-to-rent ratio is calculated using the average list price compared with average rent on two bedroom apartments, condos and townhomes listed on Trulia.com.
Of course, the counterpoint of this argument is that when is it ever a good time to buy in a major city like New York or Seattle? And any significant drop in listing price and/or interest rates should be considered a potential buying opportunity.
Source & Credit
Trulia.com
Rent vs. Buy Index Interactive Infographic
Rent vs. Buy Index research and methods
1 Comments
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8:09 am
NYC has always been expensive not just because of real estate prices. The common charges on a 2-BR apartment run anywhere from $1200 to $3000 a month on the Upper West Side, for example. Compare that to a 30-year mortgage for $200,000 at 5% which is less than $1100.