From: "Dan G" 
Newsgroups: alt.invest.real-estate
Subject: Re: Rent vs. Buy Analysis?
Date: Sat, 18 Dec 2004 17:11:23 -0700

It's really down to how long you intend to stay there. In most markets,
appreciation takes a few years to cover the costs of upkeep and sale. Figure
10% for safety, once you have that covered then it makes sense to buy. If
you're handy, you can buy a house for 10% under market and fix it up to sell
any time you like.


"Chip G"  wrote in message
news:G8Ewd.674623$mD.123797@attbi_s02...
> I would be interested in hearing your perspective on how to correctly
> conduct a rent vs. buy analysis. Here are the things that I am taking into
> account currently...
>
> 1. Purchase Price
> 2. Opportunity Cost by making downpayment
> 3. Maintenance (assuming none with Rent vs 1% of purchase price annually
> with Buy)
> 4. Inflation (on rent)
> 5. Appreciation (on home)
> 6. Tax benefits of buying (mortgage interest + property tax - the standard
> deduction at my marginal tax rate)
> 7. Yard upkeep with Buy
> 8. Amount for Rent
> 9. Amount Mortgage of Mortgage Payment
>
> I am very open to corrections to any of the above
considerations/assumptions
> and would love to hear of other things I may be omitting.
>
> Thank you!
> Chip
>
>
>