bostonbubble.com

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Is Renting or Buying better?

Allows you to play with the assumptions and configure quite a few parameters in buying or renting.

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It says if I buy a house inside the 128 loop, I will break even in 2027, assuming a 2% appreciation in home values (don't laugh) from now onwards every year.

Guest · Posted: Fri Apr 13, 2007 1:20 am GMT Post subject:

I suspect that this housing downturn will resemble more like Houston during the mid-80s so after 15 years, one'll break even which means that over 30 years, it'll probably average out to 1% appreciation per annum.

That means that rent will have to increase 5.5% per year to break even by the end of a 30 yr mortgage.

AgentGrn · Joined: 28 Sep 2006 Posts: 82

Rent won't increase 5.5% a year though ... not as the population exodus out of MA continues. (Speaking of which ... have we gotten the recent numbers yet?)

That's one of the better calculators I've seen in awhile, particularly the visual component is where it gets compelling, and based on my own assumptions of it I found that it's far better to rent where I'm at while the insanity unwinds.