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Old 10-25-07, 08:20 PM
  #359  
cerewa
put our Heads Together
 
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Join Date: Jun 2003
Location: southeast pennsylvania
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Bikes: a mountain bike with a cargo box on the back and aero bars on the front. an old well-worn dahon folding bike

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It's simple. If the total monthly payment on your house (including insurance and maintenance) net after tax deductions is smaller then rental payment, then it's a no-brainer - you should buy. Anything past that is a matter of opinion. However, if the monthly interest payment net after tax deductions is bigger then rental payment, it's a no-brainer again - you should rent.

PS. This said, ability to control the property is worth something too - if you planning to get a dog or something, the above equation should change accordingly.
Another factor is size- I rent an apartment in a size that isn't available to own (except maybe small luxury condos, which I highly doubt are a money-saving option). If I tried to own a home, there would be no way to get the price down as low as my rental here except by moving to somewhere far away where I would find myself earning less money. Of course, at a certain level of size-large housing there are usually no homes for rent, but that might not really apply to this discussion.
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