Monday, Jan 19, 2009
nice interactive DIY analysis
New York Times: Is it better to buy or rent?
I just substituted the pounds for dollars and played with the slidey things- not sure it checked out number wise (remember to leave the property tax at zero) but at the moment, buying does not seem like a good option- might be different in Manhattan. There is another article (seems corporate pushed) in the same issue advocating being brave and having a punt. Sentiment is becoming more mixed, at least in the corporate rags.
Posted by inflation is eating my savings @ 10:01 PM (305 views) Add Comment
2 Comments
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1. Cynicalsoothsayer said...
Doesn't take inflation into account, and you can't put the property appreciation slider to the current rate of price decline. Misleading.
2. mountain goat said...
I will not be making a decision to buy a house based on the calculation "better to rent or buy". IMO if you do you will just watch the value of your home drop for a few more years to come. The bubble will reverse, meaning prices will go to multi-generational lows (versus average salary). Be patient, paying more for rent now instead of buying can be viewed as an investment for the future. The other aspect not taken into account by this calculation is interest rates. They are very low now because of deflation (even if you could get a mortgage). As soon as there are "green shoots" inflation will kick in and IR will go very high (above 10%). This will keep the housing market depressed for many more years.