With so many variables involved when it comes to home size, desirability and location, plus so many differences in personal circumstances, it’s impossible to provide a “one size fits all” method to measure the costs of a particular rental against the costs of buying.
However, there are some rough calculations which will give you a “good enough” indication of whether you would be financially better off buying or renting.
Oh, and some additional words of caution. This will only work when you are comparing renting vs buying in the same area. Trying to use this to decide between renting in Los Angeles or buying in Kansas for example, won’t work.
It’s All About Your “Rent Ratio”
It is relatively easy to work out your “rent ratio.”
To learn exactly how to determine your rent ratio and how to use this number to decide whether or not renting or buying is the right decision for you, click the link to purchase The Ultimate Homebuyer’s Handbook. Not only will you learn if renting or buying is right for you, but the book will also walk you through the home buying process and answer ALL your questions about purchasing your next home!