Real estate: Buying now cheaper than rent in Tucson

[MrsBreeder]

Buying might be "cheaper," (though I doubt it) but how much cheaper will it be when you have to sell? I watch house after house in my neighborhood go on the market and STAY on the market...until one day the short sale or foreclosed sign goes out.

In order to really get your $$ worth, you better plan on putting $$$ down and staying put for awhile.

As someone who has had to sell two houses from out-of-state...and looking at the current job climate... I'll happily stay a renter.

[MrsBreeder]

Also...as a former reporter for national newspapers and magazines...the main source of this article is Trulia.com.

That means Trulia.com sent out a press release and some poor Moderator cut: snip editor said "this looks good...will fill a bit of space...run it." Considering the "sources" are with Long Reality and Trulia...I'll pass on this advice.

[ctr88]

You can't just compare rent with PITI:

1. When you have mortgage part of your payment (a few hundred dollars per month) is going to pay down the principle of the loan, this is not the case with rent. You could eventually pay the mortgage off in full, if you always rent, you will always have a rent payment which will rise with inflation where your mortgage payment is fixed for 30 years

2. When you buy you can write off the mortgage and taxes, you can't write off rent

3. When you rent you do not have maintenance and repairs

So I think if rent and PITI are equal, and you plan to stay for 10 years, it makes much more sense to buy. Because when you add in the tax write-off + mortgage principle pay down you get when buying, that is another say $500/mo+ you would not get when renting, and maintenance & repairs savings of renting may only be say $150/mo.

[vjsoto]

Originally Posted by MrsBreeder

Buying might be "cheaper," (though I doubt it) but how much cheaper will it be when you have to sell?

Assuming they stay in the house for 10 years and assuming the housing market has stabilized in 10 years (i.e. they can sell the house for what they paid for it), a seller will get *SOMETHING* back. Try doing that with rent!

[swbell6]

Plus, whose house are you going to be renting in five or 10 years? It'll be those investors who are snapping up homes at bargain prices right now. Ten years from now they'll be looking pretty smart.