A new set of research results from several universities have revealed a new way to look at the buy vs rent scenario in real estate. Called “Hurdle Rate” this is the point at which it is equally smart to rent of buy if your goal is to build wealth. Experts agree that we are currently poised at the peak of that golden time when it’s best to buy a home as it can help you towards your financial goals.
The study looks into the data of the unbiased prospect, this person is just as happy renting as they would be buying over a course of about eight years. In this study it is assumed that the renter will put the savings from renting into an investment to earn a return – a crucial point if one is seeking to increase wealth while renting. However, since few renters would realistically invest all of their savings from renting, it’s more appropriate to assume renters don’t invest all of their savings. It is in these cases, that owning a home is the overwhelmingly better investment over the holding period.
Are you uncertain if it’s time to buy? Not sure if you qualify, or even where to start? I can help you answer these important first questions and even help you begin to find the homes that will fit your specific needs. Visit my website to find great Boise homes and contact me to get help building your dream of tomorrow, today!