Sep 27, 2005 -- Buying v. selling in a bubble market
The run up in real estate has been a very hit or miss kind of thing. Values on both coasts, parts of Florida and a couple other places have gone up much faster than peoples incomes. So, its hard to know whether to buy or sell if youre moving. Clark has some good news for you on that front. If youre moving to an area that has bubbleized, the New York Times has found that renting could cost you about half the cost of owning. A typical dwelling in San Francisco, for example, costs $5,000 a month to own. The same home would cost $2,500 a month to rent. The same is true in Boston, LA, New York and Miami. In the Mid-West, however, the cost of renting costs more than the total package of a mortgage, taxes and insurance. Dallas and Atlanta are also good places to own. So, if youre going to be in a home for 10 years or more, go ahead and buy, no matter where it is. If its less than that in a bubble market, youre better off renting.
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