Boise, Idaho Blog

A recent article released by “Real Estate MSN” has Boise rated among 1 of the top 34 cities where it is better to rent than buy. Whether this is for all of Boise or simply parts of Boise is unclear. I would imagine that there are some great real estate deals that don’t fall into this category. If you are interested in determining if you should buy or rent a home you can use the general rule below:

If your house costs more than 15 times the annual average rent for a similar place in your area, there’s an excellent chance that your home is overpriced.

For example: Monthly rent = $975 x 12 = $11,700 a year
Next calculate affordability rule ($11,700 x 15 = $175,500)

In this scenario if you are spending more than $175,500 on a home you may be better off to rent than buy because the home may be over priced.

Run this scenario in different areas around Boise to see if there are homes and areas that make sense to buy. In my opinion if you can afford to buy and plan on staying long-term eventually there will be a positive appreciation in the value of your home.

This entry was posted on Tuesday, July 22nd, 2008 at 4:26 pm and is filed under Boise, Idaho Blog, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.