Buying vs. renting near VCU and MCV
I want the debate that followed from the parents of students and their colleagues at VCU Medical School is coming to Richmond this summer (or all) and the offer to decide whether to buy or rent a house near the VCU or MCV Campus.
If you buy a house or condominium.
Now I understand that my position on this is not without bias. I am a broker that many homes in and around the campus offers both VCU and MCV / VCU Health Systems sells campus. TheTake me, if you're buying. It's not really an advantage for me, if you rent. Now I'm done with my resignation, conflict of interest.
That said, does not mean I am wrong.
I will not let you rent or buy calculator argument, as we all can change the numbers until we can show what we want. Depending on the inflation and the appreciation and tax implications, go to one of those things spit some surprising numbers. These tools are interesting andhave their place. This is a discussion on the rent or buy calculator.
My argument is more macro in nature and covers the following set of conditions:
• The prices are 20-30%, depending on the market and the nature of the work
• Interest is pressed (a little 'artificially) by the Fed and still hovering around 5%.
• Lessons and board and lodging up despite the rest of the world economy moves in the opposite direction. Seehttp://www.collegeboard.com/student/pay/add-it-up/4494.html.
Rent a property for about $ 1.30 per sf per month (which translates into about $ 1200-1400 / m for the typical two-bedroom apartment in Richmond Town in or around the VCU campus) or buy a property for about $ 190-210 square foot return on the same monthly payment in cash at the end of the day.
That gives you something on your head? It is quite clear that the purchase was the promise of the head.
I knowCounter-argument is simply that many are not sure that the yield decreases after us.
The facts are as follows:
– On 01.01.2009, there were 400 flats for sale in Richmond, VA
– On 01.01.2010, there were fewer than 200 flats for sale in Richmond, VA
– There are new projects under consideration that "product" offerings for online sales came in 2010 or 2011, which would skew the numbers
Life, financial life, at least for the management / quantity / insightRisk. large sums of money for initiatives risky bets without a head is not smart. Total betting medium with a low cost of capital in a market that is balanced, with no competition in line sounds like a pretty good bet for me.
Do not be daunted by the national media. While extremism and negativity sells, I have to report on the lecture-driven real estate market is about 60 minutes to see. It is a fact that housing is one of the students' homes healthierSectors in the market (http://www.forbes.com/2010/02/23/real-estate-advisor-personal-finance-college-reit.html?feed=rss_tickers) and have a house, supported by a option to take the ability of a student, a great danger to remove from the equation.
Personally, I am now a buyer. I was not last year.