In general, it is less expensive to own than it is to buy, especially over the long term. in Madison WI, typically that long-term payoff happens in about 2 years for most folks in typical situations. If you have a crazy-great deal on rent that will be different, but generally, the rent to own calculation is about 2 years. Why? Because in Madison, the cost of rent is absurd. Absurd.
Don’t take my word for it – there is a GREAT Rent v. Own calculator where you can put in your own numbers, then give me a call or a text.
•Historically, the choice between renting or buying a home has been a close decision.
•Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
•Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!