Rent vs. Buy

Search threads, there are plenty of them on rent vs buy. Long ago was 12, 13 or 14X. It went up to 25X during the last decade.

We found a lot of apples to apples comparisons in 2008 that were 35+x and posted them here.

Rent vs Buy = Rent.

There is no rent v buy formula where you can include a decline of real estate prices of 10% over the next 5 years that will spit out a buy recommendation. Surely prices go lower from here. Wait a couple of years and your money will buy more apartment.

The one caveat I have to what Jazzman is saying is that you need to take account of inflation, which may be pretty high once the economy starts picking up, given all the money the Fed has printed lately. Your money may buy more apartment in 5 years, provided you can invest your money in a good way that at least keeps pace with general inflation.

I agree with everyone's comments on house price declines. However, I've been seeing activity picking up and am worried that the desirable units will be gone soon. I just don't understand who is buying right now.

Guess what, inflation will drive up interest rates and drive prices down. The claim above is off base and dangerous. Go back and look at periods of high inflation and interest rates. They were buying opportunities, quite the contrary to what is being proposed.

http://www.housemath.us/

This one is the most complete. You will find that over 5-7 year horizons that you need more appreciation than you think to break even.