Buying Better Than Renting

July 24, 2010

real estate, the economy

Well, this makes me feel better.

Courtesy of New York Times

Sometimes I could kick myself for buying a 155 year old home. Especially when I have to try and install square sheets of drywall on VERY unsquare ceilings and walls. NOT fun.

The New York Times has a cost calculator at nytimes.com/interactive/business/buy-rent-calculator.html, comparing rental pros and cons with ownership pros and cons. Looks like buying a home gets you ahead in the finances than renting.

But not by much. :-p

Part of the reason for the less than stellar return rate, I think, is the severe drop in housing values and the severe rise in property taxes. I purchased my home for $62,5 over 13 years ago. It is now valued at $87,0 for taxation purposes, but I could never get that amount should I sell it right now. The market is bad, and no one wants a fixer upper. I do renovate it with the expectation that the market will improve, but I renovate mostly because the house needs the improvements, and we want to live comfortably and efficiently. Still, even though I have no intention of selling, it would be nice to know that my home is increasing in value as I improve it….

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2 Responses to “Buying Better Than Renting”

  1. Marg Says:

    Well that is exciting that you are starting on the dry wall even if it is giving you a fit. I have always thought it was better to buy than rent simply because at least you have something and there isn’t a better investment than property.
    Have a great Sunday.

  2. Secondary Roads Says:

    The Buy v Rent equation has shifted as the economy and the housing market has been in this long slump. What used to be an excellent investment, may not be in this depressed market.

    Ten years ago, we moved into our [then] eight-year-old modular home. We had to put a new roof on the place and have done some painting. A backup power generator with auto start and switch over sits in the barn. The driveway is now paved. A reverse osmosis filter system cleans up our drinking water. All of this took more $$, which means we probably couldn’t sell this today for what we still owe. OUCH!