Wednesday, April 21, 2010

Buy or Rent

There was a post and comments on the student blog about it making sense to buy a home rather than rent. I trashed this fairly roughly because this amounts to a financial myth.

A piece from The New York Times this week notes that it may finally make financial sense to buy. Many places where you should have rented in 2005 — Washington D.C., Boston, Sacramento, Chicago, Miami, Palm Beach and Fort Lauderdale, Los Angeles and Riverside, Las Vegas and Phoenix — have now turned into locations where it might make sense to buy.

Most of the Pacific coast, the New York suburbs, Honolulu, and North Carolina were and remain places where it makes sense to rent.

More rust-belty places — like Philadelphia, New York, St. Louis, Indianapolis, Cleveland, Detroit and Pittsburgh — were and still remain places where you should buy. Having grown up in Buffalo, unless you don’t have a life, I don’t recommend getting tied down to those places.

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