Profile picture for AmySung

Will you be better off paying mortgage or landlord?

Time Magnize has SF as one of the cities that you should be happy to write a check to your landlord instead of paying for mortgage. Owning a home in LA, on the other hand, is a better option. How does Time figure when to rent and when to buy?.... Read on.

Use the purchase price vs annual rent. If the result comes to be 17 or lower, you come out ahead with owning your own dig. For results higher than 17, it figures that paying rent is a better option than monthly mortgage plus property tax, insurances, and all that maintentance cost. 

Tell us what you think if you are a renter.  

  • May 30 2011 - Palo Alto
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (1)

Profile picture for the_country_hick
If I am going to move in less than 7 years renting is the smarter option. Between closing costs, realtor fees, and amortization it takes that long to break even if prices remain constant. That does assume no expensive repairs or higher monthly costs for buying instead of renting.

Also, when it is time to move if the house does not sell that creates another expensive problem with no solution. Then the owner has to pay for one mortgage in one area and rent or another mortgage in a different area.

The 2 links below really show how to look at this question. It is more than just a monthly payment.
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."

"Why rent if you could buy for less money? Valid reasons inside."
  • May 30 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.