Actual RENT vs BUY in a condo from Actual market observations

I posted this the other day, no one had any points of view, perhaps because it was posted in a thread that evolved into a fight. I noticed among apartments marketed by individual owners for relatively newer developments that if the same apartment was for rent and sale, I could often see that the ratio was 25x as follows: sale price (offered) = 25 x (annual rent (offered) - annual owner charges... [more]

I posted this the other day, no one had any points of view, perhaps because it was posted in a thread that evolved into a fight. I noticed among apartments marketed by individual owners for relatively newer developments that if the same apartment was for rent and sale, I could often see that the ratio was 25x as follows: sale price (offered) = 25 x (annual rent (offered) - annual owner charges (sometimes an adjust for the income tax deductibility of the real estate tax if they were not abated)) I found it amazing how often the 25x stuck, though there was more or less and if I had to say I noticed a frequent range it was 20x - 25x. Anyway, aside from personal preferences, or personal liquidity, etc. 25x = 4%, which isn't too far off from 6% before a tax deduction for mortgage interest expense meaning renters were able to rent on favorable terms and the only logic to the owner was expected property appreciation to create the owners' return. 20x = 5% or around 7% pre-tax. of course, as interest rates rise, more like 20x or lower and more like 5% and then higher. [less]