Trulia: Buying is Cheaper Than Renting in Nearly Every Big U.S. City But NY....
“Renting is less expensive than buying in only four cities Trulia tracks: New York; Seattle; Kansas City, Missouri; and San Francisco. Boston, Cleveland and eight other cities have relative affordability for renting, though ‘buying may still be a financially sound long-term decision,’ the company said.” -Bloomberg
I’m also talking about starting out with house where everything is newly renovated, which of course you pay for up front….not some wrecks that keep needing patches all the time.
New technology roofing will last almost 40 years, benson.
I’ve had my cape house since 1992. I’ve replaced/repaired nothing that needed it. I had it repainted once at $3,500. I had the cesspool line cleaned out last year…$250. Yes, I could probably use a new refrigerator now because the one that’s there is just tired looking.
DIBS;
Oh come on. Are you being serious? Take a look at the forum section if you need to see the types of repairs that can come up. Also, please show me a roofing memberane that will last 30 years.
How about depreciation? You mean after 20 years, applicances, kitchen cabinets, etc. will be good to go? Depreciation is included in a rental price but you are not considering it here for the owner.
I assume Trulia factors in historical rental cost inflation, home price appreciation, typical duration of home ownership and transaction costs, etc.
No, I’m not kidding. If you start out with a facade, cornice, pointed brick, new windows, plumbing, electric, toilets, appliances, etc, you do not wind up spending much money at all.
I’ve had many houses that have gone for 5-7 years without a single repair. You just can’t start out with crap.
“All other repairs…$15,000 /20 / 12 = $62.50 a month.”
Hahaha. You’ve got to be kidding me. Only $15K in repairs over 20 years.
The newly-renovated house we rent has had $12K in repairs in the last year (fridge, hot water heater, squirrels in the ceiling and cornice repair, paint, sewer main repair). I know, because we deduct these costs from the rent. And I guess we are getting a sweet deal because we are renting a house in prime park slope for slightly more than one in Stuy Heights.
Roof, every 30 years = $7,000 / 30 /12 = $19.44 a month
Furnace every 25 years = $6,000 / 25 / 12 = $16.66 a month
All other repairs…$15,000 /20 / 12 = $62.50 a month.
But what should the premium for control be? Nice one bedrooms in manhattan proper still prohibitive if long term rent-buy ratios are factored into equation.
This is a question. I wonder if in NYC there is a relative lack of control associated with renting which is never reflected in these surveys. Or so it seems….the renter is subject to the landlord renewing the lease, which is not guaranteed and subject to other issues, renovations, sales, other arbitrary factors…