Whether to rent or buy. This is not a question where you find the answer by flipping a coin. But rather a Pro and Con List would be a really great solution.
This is a Reblog written by David Serle, Vice President/Managing Broker, RE/MAX Services!
Your situation is unique based on your employment and credit factors. So, it's important to speak with a knowledgeable lender in addition, and preferable prior, to speaking with your real estate agent.
People keep asking when is the market going to come back. My answer has always been well the market is not in position to come back to where it once was and the present and future is much more important today than the past. If it is more affordable to buy than to rent and the financing eases up we would have a great recovery and a better market than we have today. Even if we have 1 of the 2 the real estate market should come up slightly. Here is a table of the most desireable cities when it comes to rent vs. own.
Tables turn in 2011 on rent vs. own
WASHINGTON - Jan. 7, 2011 - Moody's Analytics data has suggested that it makes more financial sense to rent than buy in many U.S. cities, but Moody's chief economist Mark Zandi now says that is about to change.
"By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country," Zandi says.
Home prices are expected to fall further, making more homes affordable, whereas rent prices are expected to continue to rise this year.
The following are a few of the top cities where it makes more sense to buy than rent, according to Moody data. Experts generally recommend homeownership when the price-rent ratio is below 15 and renting when it's above 20.
· Cleveland: 11.43
· Pittsburgh, Pa.: 11.71
· Detroit: 12.32
· Phoenix: 12.35
· Atlanta: 12.82
· Tampa, Fla.: 13.08
· Orlando, Fla.: 13.1
· Cincinnati: 13.74
· Las Vegas: 13.89
Source: "Rent vs. Own Ratio to Flip in 2011?" Fortune (Jan. 4, 2011)
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Vice President/Managing Broker