Sometimes, the decision whether to buy a home or not seems to require an economics Ph.d.
Are interest rates headed higher? How strong is the economy? Are home prices now recovering, or will there be a “double-dip?”
It’s enough to make your head spin — or hurt.
If the foregoing (unanswerable, by the way) questions seem too daunting, try this one instead:
Can I rent a nicer place for less money than it costs to buy?
In many cities, including Minneapolis, the answer is now “no.”
Check out this NYT piece, “In Sour Home Market, Buying Often Now Beats Renting,” for the particulars.
Warning: you’ll need to divide by 20 to calculate the local “rent ratio” — the best yardstick for gauging whether buying is a better deal than renting.
If you need help filling in the numerator and denominator . . . . call me! (612-925-7701)