I know I've struggled with whether I should continue to rent or buy a place. I've stuck with renting because I'm not quite ready to be completely settled. I'd like the option of being able to pick up and move quickly, without having to worry about a property somewhere. Not sure if many of you have gone through the pros and cons of renting vs buying now that you've begun your career, but here's a cool way to know whether it's smart for you to buy versus rent according to the housing market.
Purchase price of a home
_______________________ = Rent/Own Ratio
Annual rent of a similar property
If this ratio is less than 15. You should buy. If it's over 15, it's probably financially better to rent.
The CNN feature went over 12 cities in the U.S. and whether it's smarter right now to rent or buy. Unfortunately Chicago wasn't on the list, but it's still cool to see the cities in case you're ever looking for a move.
No comments:
Post a Comment