Tags: buy | rent | home | cost

WSJ: How to Decide Whether to Buy or Rent a Home

By    |   Monday, 05 May 2014 02:06 PM

For years, Americans have striven to buy a home rather than rent one. But following a run-up in home prices during the past two years, it may make more sense for you to rent rather than buy.

The S&P Case/Shiller index of home prices for 20 major U.S. cities jumped 12.9 percent in the 12 months through February, though that rate is slowing.

So how do you figure out whether to rent or buy? The Wall Street Journal offers several tips.

Editor's Note:
These 38 Dates Are Key to Bagging $313,038


You'll want to determine your monthly costs for each scenario, the paper says. That includes rent, mortgage payments, taxes, insurance and other applicable expenses.

"The verdict could differ considerably within a city, suburb or town, based on the location and the style and size of the homes you are exploring," according to The Journal.

Some areas of the country have seen much larger home price increases during the past two years than others.

Beware that if you buy in a hot market, a bidding war could break out for the home you want. So you may benefit from waiting for a correction, The Journal notes.

Some experts say the housing market shows little sign of strength now.

"Despite continued price gains, most other housing statistics are weak," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, tells Reuters. He cites recent declines in new and existing home sales.

"The recovery in housing starts, now less than 1 million units at annual rates, is faltering. Moreover, home prices nationally have not made it back to 2005," Blitzer explains.

Editor's Note: These 38 Dates Are Key to Bagging $313,038

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For years, Americans have striven to buy a home rather than rent one. But following a run-up in home prices during the past two years, it may make more sense for you to rent rather than buy.
buy, rent, home, cost
282
2014-06-05
Monday, 05 May 2014 02:06 PM
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