Thursday, August 02, 2012

Renting v. buying: the stats are in favor of buying

I know this is an old argument, but it turns out that for renters, buying a home pays off after three years on average.  The link is to today's L.A. Times article.  Of course, the higher-priced the area is, the longer the payoff time is.  For example, it pays off in Banning after a little over a year, and doesn't pay off in Newport Beach for 14+ years. Interesting data point, no?  Given what I know about local real estate, I would imagine that a Hollywood Hills home would pay off at about 10 to 12 years,Valley Village real estate would pay off after about six to eight years, and a Burbank home would pay off in about four to five years.  That's my guess, anyway.

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