We are all likely growing a little tired of the cliché, “Now is the time to buy”.  I have personally been hearing that since 2006, when frankly, it wasn’t the time to buy. 

Those closest to me know that I am a numbers nerd, (amongst other nerd classifications I also fit into).  I might also need some work on my faith because I need to SEE the numbers to believe.  I just read this article on CNNmoney.com and it said the following.

“To determine whether it makes more sound financial sense to rent or buy, economists generally use a rule of thumb: They divide the purchase price of a home by the annual rent of a similar property. Anything over a 15, and you should rent because it will cost you less over a period of time. Below 15? Start looking for homes.”

Ok, so let's test this "rent or buy" equation right here in our own town shall we?

I ran some numbers on St. George using about 10 different properties.  I used some real life active listings (not short sales…homes you can actually buy) from my good friend and rock star realtor Jeremy Larkin and some similar rental properties from Jensen Property Management, Preferred Property Management, and Monarch Property Management’s websites. I compared rents and list prices of similar homes and I came up with a composite of 11.4.

According to this equation…….BUY!!!!!

Here's the full CNN "Rent or Buy" Article.

 

Blake Bench is a professional Mortgage Loan Officer with First Colony Mortgage in St. George, UT. He's also a "Real Estate Jedi" - you know, one of the GOOD GUYS. He can be reached at (435) 705-4128 or blakeb@firstcolonymortgage.com or check out his MORTGAGE BLOG.