Thursday, July 1, 2010

IS IT BETTER TO BUY OR RENT?

In today's market many buyers ask this question.  There are certainly pros and cons to both, but if a 6 year commitment is involved the numbers may surprise you.  You can see for yourself with this advanced buy/rent calculator provided in the following NY Times article.
"The calculator keeps a running tally of the most common expenses of owning and renting. It also takes into account something known as lost opportunity costs — for example, the return you could have earned by investing your money instead of spending it on a down payment. The calculator assumes that the profit you would have made in your investments would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates lost opportunity costs for all parts of the buying and renting scenarios."

No comments:

Post a Comment