http://spectrumblog.net/spectrum_enterprises-blog/rent-or-buy/ A Boutique Real Estate Brokerage Sat, 12 May 2012 20:03:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://spectrumblog.net/spectrum_enterprises-blog/rent-or-buy/comment-page-1/#comment-1786 David Tsegai Mon, 26 Dec 2011 19:44:26 +0000 http://spectrumblog.net/?p=1483#comment-1786 It is mainly young people and young families who struggle to find an answer to this question. Recently, I came across a fairly quick and easy measure to determine whether the price of a home is reasonable. This method by Dean Baker takes into consideration an average yearly rent in a comparable building and a comparable area. The rule of thumb is to multiply this rent paid for equivalent home in a comparable area by 15 and then compare it to the asking price of the home. As Mr. Baker argues if the price is significantly higher than the accumulated rent then it makes financial sense to rent, otherwise buying is cheaper. I know there are many more methods out there, but I find this one quite easily comprehensible. It is mainly young people and young families who struggle to find an answer to this question. Recently, I came across a fairly quick and easy measure to determine whether the price of a home is reasonable. This method by Dean Baker takes into consideration an average yearly rent in a comparable building and a comparable area. The rule of thumb is to multiply this rent paid for equivalent home in a comparable area by 15 and then compare it to the asking price of the home. As Mr. Baker argues if the price is significantly higher than the accumulated rent then it makes financial sense to rent, otherwise buying is cheaper. I know there are many more methods out there, but I find this one quite easily comprehensible.

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