Making the rent vs. own decision may have more long and short term implications than you might think. Here are some tips to help you consider the best option for you.
10. The first argument against
renting is the amount of
money you’ll spend with no
return. If you pay $1,000 a
month, you’ll pay $360,000
over 30 years with no return.
For many, that alone is a
deciding factor in the rent
versus buy dilemma.
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11. Another thing you may want to
consider: In many cities former
homeowners have entered the
rental market in large numbers,
causing rent to increase.
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15. If you want the flexibility to
easily relocate or you don’t
expect to stay in a home
beyond the short term, renting
certainly has its appeal.
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16. Buying will require your
home to steadily appreciate
to cover your costs: down
payment, taxes, closing
costs, mortgage interest,
repairs and other expenses.
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17. Finally, check the ratio of a
home’s price to that of annual
rent. The tipping point starts
about 15-20 times annual rent.
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18. For example, in a neighborhood where the average rent is
$12,000 a year and a comparable house costs $180,000,
buying a house for much more than that may not add up.
$12,000
$180,000
22. For those considering buying, the questions are often
simpler than any rent or buy calculation. You have to
figure out what is best for your family, right now.
To learn more about renting versus buying, visit
Regions.com/mygreenguide
This information is general in nature and is provided for educational purposes only. Regions makes
no representations as to the accuracy, completeness, timeliness, suitability, or validity of any
information presented. Information provided should not be relied on or interpreted as accounting,
financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional
for advice applicable to your specific situation.