Should you rent or buy? Look at it this way…wealth-building potential of owning vs. renting over an eight-year holding period and found that today’s “hurdle rate” tilts in favor of buying. The hurdle rate is the point between buying and renting at which it’s a wash in terms of wealth-building. If today’s hurdle rate is ... [Read More]
Should you rent or buy? Look at it this way…wealth-building potential of owning vs. renting over an eight-year holding period and found that today’s “hurdle rate” tilts in favor of buying. The hurdle rate is the point between buying and renting at which it’s a wash in terms of wealth-building. If today’s hurdle rate is lower than the average past property appreciation rate for a particular market, then it makes sense to buy, because future property appreciation should enable an individual, on average, to create more wealth through owning than renting. Buy today in a down market and capture the holding period for the appreciation.
