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Rent vs. Buy

I was checking out a home for rent in the bubbling market in Sunnyvale, Cupertino, and Saratoga in the SF Bay area. The property owner wanted $5500/month - she indicated that home prices were up and rents were rising (I believe I will get a similar  home for $4500 soon).
But it got me thinking. In real estate we do not consider the fact that most people cannot borrow money from the bank to rent their home. This is where the myth of ever increasing rents fail.
  • August 25 2012 - US
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Answers (2)

The fact is rentals are higher now due to demand and lack of properties to rent.
  • August 26 2012
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Yes most owners base their prices on how much their mortgage is plus a little for maintenance or a little profit. When rent the debt ratios are not taken into consideration.
  • September 09 2012
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