Buying Homes Beats Out Renting In 2011
Posted on May 19 in Free Educationby adminPrintArticle from trexglobal.com
By Property management software
For the first time in years, buying a home may beat renting.
Two factors are at play, according to researchers who recently crunched the numbers, Ken Johnson of Florida International University and Eli Beracha of East Carolina University for a paper to be published in Real EstateEconomics.
First, rents, though mostly stagnant the past few years, are expected to head higher as more people bitten by the housing bust turn to renting. Rents could rise 7% in each of the next two years, according to Peggy Alford, president of Rent.com.
Second, home prices have finally dropped enough to create a buying opportunity. Nationally, prices are down 32% from their peak, set in 2006.
The net result is that home price gains would need to average only 3.25% annually to beat renting, according to Beracha and Johnson. To make the math work, you have to stay in the home for at least eight years.
Greetings! Thank you for your thoughtful post!
I discovered your weblog site on google and check several of your early posts.Continue to help keep up the extremely great operate.I just further up your RSS feed to my MSN News Reader.Looking for forward to reading a lot more from you later on!?-
Cool. Your blog looks great, and I’m glad i’ve found something here worth adding to my favorites.
Hey, Thanks for the great insight, you seem to to be such the expert in this area. Keep’em coming!
You’re the best, always enjoy reading your posts.