Debdem, Home Owner in Long Island City, NY

is there a rent vs. buy calculator that considers the investment gain you would make on the money you would instead put down on a house?

Asked by Debdem, Long Island City, NY Wed May 11, 2011

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Most economists say the rent to buy ratio should be 1:1 or 1:1.5 times. In other words, if it costs $1000 to rent then it should cost no more than $1500 to buy to be a good idea. It may be a bad idea right now in Nevada but our area, New York/New Jersey is either AT that price point or very, very close. Fortune magazine, this week, said NOW is the time to buy real estate and just yesterday on CNN I saw a financial analyst recommend real estate as an investment so strongly it amazed me.

Talk to a loan officer, you may not need a huge down payment, FHA requries 3.5% only. Then do the math. I am working with a couple right now who are purchasing a two bedroom house. Their mortgage payment (with a sizeable down payment, but that is a choice) is going to be around $1200 for principal and interest. To rent the same house would cost around $1600 - $1700 per month, which means in this case it is cheaper to buy than to rent.

It is very wise to look at purchasing a home as a business decision. You are to be congratulated for that! Now, go do your research and then do the math. And by all means let us know what you find!
1 vote Thank Flag Link Thu May 12, 2011
"investment gain" in 'real estate' in 2011. I don't think you need a calculator for that. The cHoice under almost any scenerio is Rent.

David Cooper ..Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flows. Free Daily list
email or Call +1-7024997037. not a real estate investor
0 votes Thank Flag Link Wed May 11, 2011
Just google on the internet...there are lots of them out there and they are all pretty good.
Web Reference: http://gailgladstone.com
0 votes Thank Flag Link Wed May 11, 2011
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