http://realtyworldselzer.com Serving areas of Mendocino, Lake, and Sonoma County since 1976. Fri, 18 May 2012 00:25:32 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 http://pattymcmillen.com/2012/04/13/buying-makes-more-sense-today-3/ http://pattymcmillen.com/2012/04/13/buying-makes-more-sense-today-3/#comments Fri, 13 Apr 2012 22:34:00 +0000 Patty McMillen http://realtyworldselzer.com/2012/04/13/buying-makes-more-sense-today/ 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.

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