Mamta Badkar | Aug. 12, 2012, 5:20 AM
A recent study by Fannie Mae showed that 85 percent of Americans think owning a home makes more sense in the long-term than renting.
Zillow has come out with a new metric called the breakeven horizon to help prospective home buyers determine whether it makes sense to buy or rent in a specific metro.
The breakeven horizon refers to the number of years after which buying a home is more “financially advantageous” than renting one. The shorter the breakeven the horizon, the more it makes sense to buy.
Unlike the price-to-rent ratio this metric includes a whole range of possible costs including mortgage payments, property taxes, utilities costs etc.
We drew on Zillow’s report to put together a list of the 7 metros where it makes most sense to buy a home and included the price-to-rent ratio, median listing price, and median rent price….
Read more: http://www.businessinsider.com/best-cities-buying-a-home-2012-8?op=1#ixzz23RsQT3yB
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