Rent vs. Buy in 2013

Hessam Nadji, senior director of reasearch at Marcus & Millichap, spoke with Fox Business’ David Stockman about whether renting or buying was the better option in 2013. Nadji commented that the markets improved on the for-sale and rental sides, noting that the rental market has returned to pre-recession levels. He said people must make decisions on whether to rent or buy based on their own fundamentals, like debts, jobs, and whether they can qualify for a loan. Many have come to the conclusion that, given the economic climate and their financial circumstances, they will be looking to rent for a long time. As the job market improves, many young people between ages 18 and 34 are capturing a large number of the new jobs. The comparison between mortgage payments and monthly rent is a deciding factor, and in cases where mortgages are higher, more people are renting. He also said apartments are a very attractive investment that can bring in yields between 4 percent and 6 percent, depending on the location. | Read More