The Real Deal New York

Myths about homeownership persist: professor

February 20, 2012 06:00PM

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When is it better to rent than to own? All the time, says a new case study by a professor at University of California, Berkeley. And not just from a practical standpoint; also from a financial one, Reuters reported.

The reason is that the carrying costs associated with homeownership, such as property taxes and renovations, often cause homeowners to fail to meet their other financial goals, the professor, Rich Arzaga, said.

Of course, there are critics of that logic.

“To state that owning a home is or isn’t a good investment is too simplistic,” said Jeffrey Rogers, president of Integra Realty Resources, a New York-based real estate appraisal firm. “It depends. In times of relatively higher rents, low home values, and low interest rates, it makes sense to own a home. But in a reverse market, it wouldn’t be economically feasible. Over time, those who purchase in down or flat markets with low interest rates come out ahead.” [Reuters]

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