Comments on: Real Estate P/R: Is There A Parallel With Stock P/E or Are You A Rental Case?

By: Bob

Bob — Fri, 13 Jun 2008 14:55:50 +0000

Many people are saying that now is clearly the time to buy. Whether it is for investment sake or a place to live, there are many bargains out there and if you have the stomach for it, try a short sale ~ you can save even more.

By: Lane Bailey

Lane Bailey — Fri, 02 May 2008 04:02:55 +0000

It is certainly very interesting, but one of the basic fluctuations is going to be the cost of money… If the interest rate to buy the home is 5%, and the payment to purchase is $1000/mo. that $920 looks entirely different that if the interest rate is 13% and the home costs $2100/mo. to buy.

Aside from that, it is quite an interesting ratio to track. I guess if I were doing it, it wouldn’t be price/rent, but payment/rent.

By: Jacinda

Jacinda — Thu, 01 May 2008 12:44:31 +0000

I’ve never heard of the price/rent ratio before. I think there’s a lot more to it than just that, though. By renting the place even for just a year, you’ve wasted $11,040 that could have been used to build equity, so that’s an opportunity cost. Depending on what your mortgage might be, that might be the wise decision assuming you have a very small down payment and high monthly payment.

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» Real Estate P/R: Is There A Parallel With Stock P/E or Are You A … — Thu, 01 May 2008 10:51:52 +0000

[…] Joseph Ferrara released a post on Real Estate P/R: Is There A Parallel With Stock P/E or Are You A … that may be of interest. Here’s a brief excerpt: […]

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Thu, 01 May 2008 08:43:04 +0000

[…] Mediabistro.com wrote an interesting post today onHere’s a quick excerptReal Estate P/R originally published March 6, 2006. The ratio was extremely high at the time. Related links to this post : […]