Rent or Buy? Length of Stay

poy ff- Guide to Decide: Rent or Buy .com Presents: Length of Stay buy rent when does it make sense to buy? each property has a number. 1 2 3(45 6 7 rent year For any property, you can calculate the length of stay for which buying becomes the cheaper option. $300,000 $24,000 $24k 525K S26k S27k $28k 530k $32k For example, you could buy this home for $300,000 or rent it for $24,000 a year. If you're planning to stay more than 4 years, you should buy. If less, then rent this home. buy Rent in the short-term, buy in the long-term. average cost per year $48k 534k $28k s26k $25K S24kES23k assumes 2% annual increase in rent and home prices, 30-year mortgage at 5.5% Home price trends have a big impact on the decision to rent or buy. Choose to rent if prices are falling; choose to buy if prices are rising. this number varies by city, neighborhood, and property. take a look at some examples... Greenwich Village East Vil Omaha Chicago SOHNEW York The Loop Tribeca Lower East Side 1 2 345 6 7 3 4 567 8 9 12 13 14(15)16 17 18 year year year In more densely populated areas it becomes more expensive to buy than rent. These heat maps show the ratio of home prices to rent prices from Low to average to high. Presented as example only, calculations vary over time and by neighborhood. Maps via hotpads.com, copyright OpenStreetMap CC BY-SA 2.0 e payoff.com/blog poyf.am e twitter.com/payoff .com™ Fund your dreams. f facebook.com/payoff