{"id":190,"date":"2006-08-09T07:55:27","date_gmt":"2006-08-09T14:55:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=190"},"modified":"2006-08-09T07:55:30","modified_gmt":"2006-08-09T14:55:30","slug":"owning-versus-renting-in-the-long-run-owners-appreciate-their-returns","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/190\/owning-versus-renting-in-the-long-run-owners-appreciate-their-returns\/","title":{"rendered":"Owning versus renting: In the long-run, owners appreciate their returns . . ."},"content":{"rendered":"

Searchlight Crusade has a compelling comparison of the financial benefits of buying a home, as opposed to renting<\/a>:<\/p>\n

Once you have bought, you step off of that one way escalator of rising rents. Rents increase at a yearly rate about comparable to inflation in most cases, and rents never drop. I have never heard of a rent decrease except in areas that were so far gone they might as well have been war zones. You only borrowed $X when you bought, and unless you take cash out (which is under your control) you should never owe more money next year than the previous one.<\/p>\n

So buying stops your situation from getting worse. What about making your situation better? First off, I need to observe that with rising rents, your situation will always get worse until you sell. But buying really does make your situation better. Not immediately; there’s always a hit for buying, and it always costs money to sell. But within a couple of years the average person will be above any reasonable return they can earn any other way, and the reason is leverage.<\/p>\n

Fact one: you always need a place to live, and the options are to rent or to buy. Renting typically requires less cash flow, but returns nothing. Once you have bought, all that lovely appreciation belongs to you and nobody else but. Let’s look at an actual scenario for San Diego, one of the highest priced places to buy.<\/p><\/blockquote>\n

The article runs through a side-by-side, dollar-for-dollar comparison of the costs and benefits of homeownership — even in a high-priced area like San Diego in a slow market.
\n<\/p>\n

Technorati Tags: blogging<\/a>, real estate<\/a>, real estate marketing<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Searchlight Crusade has a compelling comparison of the financial benefits of buying a home, as opposed to renting: Once you have bought, you step off of that one way escalator of rising rents. Rents increase at a yearly rate about comparable to inflation in most cases, and rents never drop. I have never heard of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,6,5],"tags":[],"class_list":{"0":"post-190","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":190,"position":0},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15\/rising-rents-keep-sky-from-falling\/","url_meta":{"origin":190,"position":1},"title":"Rising rents keep sky from falling?","author":"Odysseus","date":"November 20, 2005","format":false,"excerpt":"In the midst of the appreciation boom in Phoenix, one of the regular Chicken Little complaints was that investors would cause a glut of rental housing, which would then sit vacant until they sold the homes in desperation. This is the static-market fallacy: This change will cause a problem, after\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":108,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/108\/phoenix-apartment-rents-up-74\/","url_meta":{"origin":190,"position":2},"title":"Phoenix apartment rents up 7.4%","author":"Greg Swann","date":"July 20, 2006","format":false,"excerpt":"Site cite: Las Vegas Review-Journal. Rents are up and vacancies are down across the board in rental housing. The Republic could take notice, except it's too busy telling itself that real estate investors cannot possibly know what they're doing. Technorati Tags: arizona, arizona real estate, phoenix, phoenix real estate, real\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1037\/interest-rates-and-the-small-investor\/","url_meta":{"origin":190,"position":3},"title":"Why Small Investors Should NOT Stress About Interest Rates","author":"Cooksquared","date":"February 12, 2007","format":false,"excerpt":"Interest rates and the small investor, is there really an effect? Beyond the obvious cost of borrowing, I have wondered if the small investor really notices a change in the Fed Funds rate. While I am not going to make the same mistake of asking you all to humor me,\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1127,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1127\/real-estate-investment-theories-that-can-actually-help-you-make-money\/","url_meta":{"origin":190,"position":4},"title":"Real Estate Investment Theories that can Actually Help You Make Money","author":"Cooksquared","date":"March 9, 2007","format":false,"excerpt":"Some of you may have noticed a drop in my postings over the last two weeks. The driver behind this has been mid terms. For those of you who don't remember what that was like when you were in school, imagine doing all of the work you do in a\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15210,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15210\/gates-rents-home-near-my-hood-thats-all-for-now\/","url_meta":{"origin":190,"position":5},"title":"Gates rents home near my hood – that’s all for now","author":"Robert Worthington","date":"October 11, 2011","format":false,"excerpt":"Recently Mr. Bill Gates and his wife have found a nice retreat in Wellington, Florida to relax for the winter months. The couple will be staying from January till May 2012. Gates is not far from my home in Boynton Beach Florida. What surprises me is the home that he\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=190"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/190\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}