Best Time To Stop Renting.

The best time to stop renting and buy a house is when it costs less to buy than to rent. Makes sense, but how do you figure that out? Find two similar houses – one for sale and one for rent – and divide the asking price by the annual rent. The difference is called the rent ratio. During the 1970s, 1980s and 1990s, the nationwide rent ratio stayed between 10 and 14, then rose to nearly 19 in 2006, when the housing market topped out. (The rent ratio neared 35 in San Francisco and San Jose in 2006.) A rent ratio of 20 or more usually means that it costs considerably more to own than rent after you factor in the mortgage, taxes, insurance, repairs and other expenses. It makes financial sense to buy when the rent ratio is a lot closer to 10 than to 20.  
Longtime journalist Di Vincenzo wrote the New York Times best seller Buy Ketchup in May and Fly at Noon: A Guide to the Best Time to Buy This, Do That and Go There. Last month, he released an app based on that book called WHEN. An all-new second edition on the best time to buy things, called Buy Shoes on Wednesday and Tweet at 4:00: More of the Best Times to Buy This, Do That and Go There, was released on Sept. 11

Read more: The Best Times to Buy or Sell a House | TIME.com http://business.time.com/2012/10/10/the-best-time-to-buy-or-sell-a-house/#ixzz2vKkqmqTJ

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Arun Jasra

Arun Jasra

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CENTURY 21 SkyLark Real Estate Ltd., Brokerage*
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