Buying a home pays off after three years on average
Sep. 17, 2012
Real estate website Zillow says the ‘break-even horizon’ for potential home buyers varies widely depending on location.
Real estate website Zillow has a provocative data point for every renter thinking about buying these days: That move pays off after just three years on average nationwide.
The company, which lists for-sale and for-rent information on its site, has released a new analysis of what it calls the “break-even horizon,” comparing what it would cost to buy or rent the same home in a number of U.S. markets over time.
In the combined Los Angeles and Orange counties, the magic number is 4.3 years, assuming the buyer has made a 20% down payment. Buying wins out after only 1.6 year in the desert community of Banning. But Newport Beach residents must wait 14 years for buying to make more financial sense than renting.
Read here for more:
http://www.zillow.com/blog/2012-08-02/should-i-buy-or-rent-we-do-the-math-for-you/
