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Rent Vs buy or cap rate?

Started by highend00
about 16 years ago
Posts: 85
Member since: Oct 2009
Discussion about
What is the percentage of down payment that I should consider when doing a rent vs buy evaluation? Is there a "standard" % that is correct to utilize when doing this kind of comparison or it should be based on my particular situation? I am trying to see if there is a unique method to do this kind of analysis. Or I should look at the cap rate, a sort of P/E? Thank you for your help!
Response by rhinocomm1
about 16 years ago
Posts: 14
Member since: Jan 2010

Cue Rhino, the one topic "man".

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Response by Sunday
about 16 years ago
Posts: 1607
Member since: Sep 2009

I find this calculator to be pretty good. Be sure to update the Advanced Settings section for your particular situation.

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1

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Response by highend00
about 16 years ago
Posts: 85
Member since: Oct 2009

Thank you!
It looks like prices should decrease at least another 20%, probably more, in order to make sense for me to buy with a 20 or even 30% down payment.

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