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Trulia says buy on the Texas Coast

March 2, 2014 By Michael Stuart

Trulia looks at homes for sale and for rent and calculates the average rent and sale price across all listed properties in a metro area. The Texas coast is in the Green.

Texas-Buy-Over-Rent

Then, Trulia factors in the total costs of homeownership (e.g., closing costs, maintenance, insurance, taxes, etc) and total cost of renting (e.g., renter’s insurance and security deposit).

The starting assumptions are that a prospective homebuyer can get a mortgage rate of 4.5 percent, itemizes their federal tax deductions, is in the 25 percent tax bracket, and will stay in their home for seven years.

People in the 35% federal income tax bracket are also assumed to pay 5% state income tax.

To account for the opportunity costs, Trulia calculates the net present value of the payment streams for renting and owning. Circles are sized proportionally by population.

Read more Rent vs. Buy: Which is Cheaper for You?

Filed Under: Market Research

About Michael Stuart

Mike's experience in the technology industry is quite extensive, serving both as a designer of complex enterprise applications and as a corporate executive. In his previous life, Mike was founder and CEO of AssetWorks Inc. the industry leader in facility management solutions. Currently living on the Texas coast helping with digital strategies using Amplified Content Marketing.

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