Today’s excellent Bloomberg News piece on Rent versus Buy: Manhattan Best For Homebuyers Since 2006 As Rents Jump uses our metrics, namely those found in this chart and info crunched from our preparation of The Elliman Report: Manhattan Rentals 1Q 12:
We are not saying it is cheaper to buy than it is to rent. However with record low mortgage rates and record high rental rates, there are more people transitioning to rental than we have seen in a number of years.
- Manhattan Best For Homebuyers Since 2006 As Rents Jump [Bloomberg]
- Manhattan Rental Charts [Miller Samuel]
- The Elliman Report: Manhattan Rentals [Douglas Elliman]
We, here in Cyprus, would say it’s better to buy as an investment and rent out your property, that’s what we suggest to our customers. Plus we have plenty of clients who’s budget doesn’t allow them to buy (nor ever will) so we can stand by our words, when we say to our wealthier clients to invest.
They key factor in my mind is mortgage rates. If you can qualify for a 3.25% 30-year fixed rate, then why NOT buy? Of course, that is a big “if”.