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(R)eally high, (E)quity = 0, (N)o appreciation, (T)ime to buy

Rent. It has literally become a four-letter word and a major factor in homeownership decisions across the Bay State these days. A new report by the National Low Income Housing Coalition has uncovered that Massachusetts small towns and suburbs are the most expensive in the countryfor renters.

The average monthly rent for a two-bedroom apartment in Arlington can run you about $2,007. While this is still less than similar rents across Bedford, Belmont, Cambridge, Medford, Lexington, Somerville and Watertown, it is still considered steep.On the flip side, 20% down on a $400,000 home at a 3.8% interest rate puts you at $1,500 for a monthly payment (this is a rough estimate, as there are other fees and costs involved), making the Rent vs. Buy decision a no-brainer in many cases.

There are many valid reasons to rent. For example if you won't be in an area for long, if you're saving for a down payment, or if you need to be able to move quickly. It can also make sense to rent when home values are falling.

But it is wise to buy when home values are on the upswing (like now), then the home you purchase will likely increase in value and build equity long-term. So while the monetary aspect of rent vs. buy is pretty clear, don't forget that the personal and financial aspects are equally as important to consider in your decision. 

The housing recovery is well underway, and with low interest rates and skyrocketing rents, it looks like a great time to Begin your search, Understand the market, YourHomeForSale can help. 

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