Renting or Buying, Which is the Better Value? (As reported by Neil Erwin at the New York Times)

Becoming a homeowner and making that first step onto the property ladder has long been a central part of the American dream.  A recent article in the New York Times suggests that, for those living in the county’s most expensive metropolitan areas, renting might make more sense in the current economy.  There are a number of factors to consider when buying a home including (but not limited to); price, how long a person plans to stay in the home, mortgage interest property tax rate.  The article advises that economists generally expect home prices to rise in the coming months/years, making the potential cost of ownership higher than its benefits.  For example, homeowners who have purchased in this market of rising prices are subject to a potential correction (i.e. reduction in value of property) in the housing market at some point in the future. A renter is largely insulated from this factor and also benefits from not being liable for home repairs, insurance and more.  Curious which option is best for you based on your finances and where you live?  The article includes a calculator that may just help to make up your mind.  Read the full article from Neil Erwin here and try the online calculator here.

 

 

 

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