Saturday, January 07, 2006

Housing Bubble Calculator - Rent Vs. Buy

The Center for Economic and Policy Research provides a great tool on its website. A calculator that will figure whether your house purchase makes sense when compared with renting. The chart at right was taken from a calculation that assumed the purchase of a $900,000 home in Los Angeles with $100,000 down, a fixed-rate 6 % mortgage, a buyer in the 33% tax bracket filing an itemized return with no intention of selling the house for 30 years. Give it a shot yourself. Here's the calculator link.

— The Boy in the Big Housing Bubble