Wednesday, April 11, 2007

NY Times: Rent vs. Buy

by Bill McBride on 4/11/2007 12:07:00 AM

David Leonhart at the NY Times writes: A Word of Advice During a Housing Slump: Rent

... in a stark reversal, it’s now clear that people who chose renting over buying in the last two years made the right move. In much of the country ... recent home buyers have faced higher monthly costs than renters and have lost money on their investment in the meantime. It’s almost as if they have thrown money away, an insult once reserved for renters.

Most striking, perhaps, is the fact that prices may not yet have fallen far enough for buying to look better than renting today, except for people who plan to stay in a home for many years.
Try out this interactive tool too: Is it Better to Rent of Buy?