August 21, 2008
- Roseburg, Oregon
SAVING YOU MONEY: Renting vs. buying
By KVAL Web Staff
In the past most economists and housing experts would steer you away from renting because you're throwing money away instead of building equity right?
But consider this: The price of a house fell 4.5 percent in the third quarter this year compared with 2007. The trend shows that the value of a home will continue to slide. With the housing market drain homeownership has become simply renting from the bank.  In the current situation, instead of paying $20,000 for a down payment on a home, think about renting and investing that money in a mutual fund. Your investment will be growing instead of losing in value. $20,000 at - this is optimistic - six percent will grow by $1,200 the first year. $20,000 losing value at 4.5 percent will shrink by $900 in one year. A mutual fund doesn't need repairs or insurance like a house does. Of course if the market turns around, then buying will be the better investment. |
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