The house I was born in sold for $4000

Re:The house I was born in sold for $4000 by scarmig on Monday May 27, 2013 @11:55PM (#5777952)

Financially, though, the fair comparison is whether the capital invested in a house generates more rental income (from yourself) than what the capital would make in equity, after accounting for property taxes, insurance, and upkeep.

Most calculations I see suggest it's pretty much a toss up at that point, and which you choose should depend on factors like preference for mobility or stability.

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Re:The house I was born in sold for $4000 by dennisgorelik on Tuesday May 28, 2013 @02:45AM (#5778537)

It actually depends on location. Buy/Rent ratio is much higher in Bay Area and NYC than in Arizona/Texas/Florida/Kansas/...

So in Bay Area it's generally better to rent, while in mid-America it's better to own.

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Re:The house I was born in sold for $4000 by deadc0de on Tuesday May 28, 2013 @03:13AM (#5778638)

Exactly. It's fairly entertaining to play with this model: http://www.nytimes.com/interactive/business/buy-rent-calcula...;

Basically almost anything in the bay area is not going to be profitable, in the south bay for sure.

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