Wednesday, Apr 11, 2007
Renting Vs. Buying in the US
New York Times: For Many, Renting Home Now Cheaper Than Buying
"... in a stark reversal, it’s now clear that people who chose renting over buying in the last two years made the right move. In much of the country, including large parts of the Northeast, California, Florida and the Southwest, recent home buyers have faced higher monthly costs than renters and have lost money on their investment in the meantime. It’s almost as if they have thrown money away, an insult once reserved for renters."
Interesting implications for Britain given that rental yields are lower in the UK than in the US and that mortgage interest is no longer tax sheltered in the UK. Article includes a great interactive graphic calculating the break even point for renting vs buying, though the assumptions are tailored for the US market.
1 Comment
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1. Paulos said...
Worth pointing out my rental situation again...
Rented a flat 2 years ago for £600.
After six months, landlord raised rent to £660. We agreed to renew for another year because similar properties in the area were renting for £700+.
Due to renew our contract again in September. Rents in our area have now FALLEN to a typical £575.