The Great Debate: Rent VS Buy


You know what is TERRIBLE? That lenders and real estate professionals are circulating rent versus buy calculators that are NOT AT ALL REALISTIC to give you a false sense of security that you are making an informed, intelligent, data driven decision about whether to rent or buy. The cost of home or commercial property ownership FAR EXCEEDS the loan costs, interest, fees, less appreciation. In all fairness sometimes leasing has a lot of unexpected costs as well. Depending upon the specific lease terms (leasee may be responsible for pest control, landscape, annual mechanical cleaning, etc.) or property ownership structure (co-op, townhome, free standing, multi-unit, urban, rural, etc.) the actual net spent is unlikely to be captured with such elementary calculators. I'm not saying the one being provided is the best, but I am saying that at least it assists you in accounting for ancillary expenses. If you're very serious about making an accurate data driven decision ask your real estate agent for a detailed rent versus buy analysis between two subject property examples that are representative of realistic options. Sadly you may get a good bit of uneasiness from your agent if they are not well versed in analytics. OR... you could, say, ask a free consultant, like me, who does not stand to earn a commission off of your housing choices and have confidence in the data provided...For calculator click here for OR for a personalized professional analysis click here. P.S. don't forget about how the decision will impact your taxes and the potential for capital gains tax as well!


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