Should you buy or rent a home? It’s one of the biggest decisions you will make in your life. In cities like San Diego, Washington D.C. and Los Angeles, it may make more sense to rent despite today’s low mortgages rates. And here’s why. Online real estate listings website Zillow compared so-called break even periods of top metro areas around the country to determine how long it would take to come out ahead on a home purchase versus renting that same home there. The analysis considered recouping the costs associated with buying a home such as taxes and maintenance. San Diego had the third longest breakeven time frame at just under 4 years. Washington, D.C., had the second longest breakeven time frame at slightly over 4 years. And the city with the longest breakeven horizon? Los Angeles. The ‘City of Angels’ breakeven time frame is just over 5 years. So if you’re planning on buying a home there, make sure you plan on staying awhile.
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