Rent or Own? (again)
I'm a bubble agnostic, but I have a question. Rent or Own?
I was really suprised by the results I got from this New York Times rent vs. own calculator. :shock:
Rent vs. Buy Calculator
My question for this board: using the calculator is it better to rent or own in Seattle right now based on what you're seeing?
It depends on your assumptions, of course. Since we're dreaming, here's a scenario: 700K house, 30% down vs. extravagant rental at $2300 a month. You can also up the investment return (under "advanced") to 8-10 percent, but even if you leave that setting as-is and up the home price increase to 6% a year, you are better off renting after 30 years.
This surprised me. It seems like it doesn't matter if there's a bubble that is going to burst or not. Either way, a lot of renters could be better off after 30 years.
I was really suprised by the results I got from this New York Times rent vs. own calculator. :shock:
Rent vs. Buy Calculator
My question for this board: using the calculator is it better to rent or own in Seattle right now based on what you're seeing?
It depends on your assumptions, of course. Since we're dreaming, here's a scenario: 700K house, 30% down vs. extravagant rental at $2300 a month. You can also up the investment return (under "advanced") to 8-10 percent, but even if you leave that setting as-is and up the home price increase to 6% a year, you are better off renting after 30 years.
This surprised me. It seems like it doesn't matter if there's a bubble that is going to burst or not. Either way, a lot of renters could be better off after 30 years.
Comments
We have always owned, last time took out a JUMBO note and had no $$ at the end of the month for any fun.
Today we rent, save thousands every month in real dollars.
BUY NOW buzzes around our heads but its like a bee, buy and get stung.
Some days living as a renter feels like being on a no carb diet on a cruise ship, I just remind myself that this is the TITANIC not the Love Boat.
Thanks!
I think everyone should like it since you can tweak the numbers to get a range (with a lot of variables under the advanced section too).
Also, if you punch in the same set of numbers to the NYT calculator and my spreadsheet, you get very similar results. It's nice to have a bit of affirmation that my calculations are fairly accurate.