In an article by John Cropley in the Daily Gazette on 7/4/06, Sunrise Management & Consulting President Jesse Holland comments about why its sometimes better to rent vs. buy. An except from the article follows and to read the full story, click on the image below:
“If you’re moving jobs it’s going to be less risky and probably less expensive to rent an apartment than buy a house,” said Jesse Holland, president of Sunrise Management and Consulting. “From a demographic standpoint, you have the millennials coming up, who are more mobile, are not looking to take care of a house, don’t have the ability to finance that house.”
Closing costs to buy a house can run 3 to 5 percent. A Realtor’s commission to sell it can run 6 percent. So that’s a 10 percent bite to buy once and sell once, with no guarantee of making it back over the short term: The market value of a home might surge 10 percent in a short time during a hot market but it might depreciate 10 percent during a downturn.
“You really need six to 10 years in a house before you can make money on the sale of that house, just over the transactional costs,” Holland said.
Buying a bargain house might be less expensive up-front, but if it is cheaply built or run-down, it may need a lot of maintenance, at considerable cost in time or dollars.
“You really need to factor that in,” Holland said.
Click on the image below to read the full story:
