Friday, April 8, 2011
Rental Costs are About to Takeoff
From KCM Bloggers: We are often asked whether it is better to rent or buy in the current housing market. The answer to that question is: “It all depends”. There are certain situations where renting short term probably makes sense. It may make sense if you are retiring to a different region of the country and are not yet sure where you want to set down roots for the next 25 years. It may make sense if you have a one year employment contract which will probably require a move to another place upon termination. However, in most other cases, renting right now makes little sense for several reasons. Even though prices may still soften, waiting to buy makes no sense as the cost of owning a home may still increase. Mortgages may soon become much more expensive than they are right now. Owning a home is less expensive than renting a home in 72% of major U.S. cities. Rental costs are about to explode.