5 reasons it's smarter to buy than rent
One of the biggest myths in the real estate industry is that it is cheaper to rent than to buy. In 71 percent of the cities in the U.S., owning is now currently cheaper than renting. Many experts are predicting that rent increases will run as high as 5 to 10 percent per year over the next five years.
"What's the best hedge against inflation? Real estate: the only hedge against inflation that you can live in."
1. Real estate keeps pace with or exceeds the rate of inflation
Everyone today is concerned about the level of federal spending. A key concern is inflation. Hard assets -- real estate, gold and silver, among them -- have historically served as hedges against inflation. In fact, even in the areas hit hard by foreclosures, virtually all of them have shown substantial increases in real estate values when viewed in the long term.
To illustrate this point, when my father died in 1998, his house in California was valued at $168,000. At its peak in 2006, his house was worth almost $600,000. Today it's still worth about $350,000. That's still a 108 percent gain in value in 13 years. While not every area has seen such increases, more than 90 percent of all homes are still worth substantially more than they were 10 years ago. "What's the best hedge against inflation? Real estate: the only hedge against inflation that you can live in."
Thanks to Bernice Ross with Inman News®
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