This article from finance.yahoo.com, talks about 7 places where you should rent instead of buy. The analysis is done based on looking at rent amounts and purchase prices. When it comes to making a good decision financially, the numbers are the numbers are the numbers.
Each of the cities dicussed displays the break even horizon, price to rent ration, median home price and median rent price.
These four factors are all you need to determine whether you should rent or buy! Doesn't it make sense that as far as a financial decision, all you need to evaluate is the current rent price and the current cost of the house? What happens when an investor tries to purchase an investment property in an area where people should rent rather than buy? Does it matter whether people think the value of the property will go up?
The areas listed in the article have these seven cities:
- San Diego, California
- Seattle, Washington
- Boston, Massachusetts
- Los Angeles, California
- New York, New York
- San Francisco, California
- San Jose, California
Looks like you shouldn't be investing in properties in California, doesn't it? Read on at sizusfinlit.blogspot.com.
This post was reposted from http://finlit.biz/debt/7-places-you-should-rent-instead-of-buy/, originally written on January 29th, 2013.
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