Real Estate agents will hate this post. Economists will probably agree. A lot of other people will continue sitting on the sidelines waiting for the dust to settle. One thing is for certain, no one really knows what they’re talking about because it involves predicting the future.
Lets run through an example together.
1) 2607 Western – 1 bedroom, 1.5 bath loft on the market today for $330,000.
I know that the rent for a comparable loft in this building is right around $1,750. The homeowners association dues rack up $341 a month for this amenity rich building. I am going to be a sunshine beaming optimist and assume (probably incorrectly) that the housing slump has been completely solved and appreciation has returned to a historical average of 3%
Lets plug it into the calculator and take a look at the results….
In summary. If you’re planning to stay put for 12 years – Buy. Otherwise, hold tight and rent. Use the money you’d save and invest in something like rare comic books or gold bullion.