How Long Should I Rent?

This lady is going to be living in another city for just a few years and is wondering whether to buy a home or not?

QUESTION: Abbey wants to know how long she should rent before buying a house in a new area. She’s only going to be there four years.

ANSWER: Pull two multiple listing statistics from the local real estate agent: find out the average annual appreciation over the past 10 years and the average days on market.  For example, if the houses are going up 3% a year and it takes them six months to sell, you probably don’t want to buy in that area because you’ll probably lose money and have a hard time selling.  If they go up 15% a year and sell in a couple weeks, then you should buy because you will make money in the four years that you’re there.

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