BobMortgage Zone: Is it Better to Rent or to Own?
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Depending on where we are in the real estate market’s cycle, it might be more financially advantages to rent rather than buy a home. According to CNBC’s Dana Olick, it’s better to rent than to buy in today’s market. But is that really the case?
Take a look at the fact and figures in the 21st episode BobMortgage Zone with Bob Johnson (AKA BobMortgage), the senior mortgage adviser at the nation’s oldest private lender, Wallick & Volk. What do you think?
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Candy, I am a big fan of yours. and hope to meet you someday. However, I have some issues with Bob Mortgage. In his own vs rent analysis he makes an assumption that a home appreciates 4.25% a year. I guess he has never been through a down cycle. Bob also forgets to mention the ongoing maintenance (yard, pool, sprinkler, pest service etc.) and capital repairs (appliances, hot water heaters, HVAC systems). All homeowners know these are real costs. A real analysis would also include the opportunity costs if you had invested your down payment in something else. I am a big proponent of home ownership but Bob’s analysis is naive and does not illustrate the true cost of owning a home.
Let’s have coffee!