Rent Vs. Buy in Portland Real Estate Market Prediction 2014
Which is a better investment? Should you avoid risk and keep renting, or bite the bullet and purchase a home?
Here are some key factors to consider:
Portland area rents have incrased an average of 5% in 2013. That is an annual “depreciation” of -5%.
In contrast home prices have risen in Portland 10% from 2012 to 2013.
According to the Portland Metropolitan Association of Realtors:
The average annual monthly home payment in Portland was 14,467 in 2013, while the average rent paid was 13,212.
However, the homeowner had an average interest deduction of $2,853, property tax deduction of $896 and gained appreciation (equity) of $4,702.
This is based on median home prices in Portland and a 30 year fixed loan.
At the end of the year after calculating deductions and appreciation, a Portland homeowner in 2013 paid $9,003 while an average renter paid $13,212.
The math couldn’t be more clear. Homeowners on average enjoy a net worth of more than 34X times that of a renter.
Zillow Real Estate Research is predicting Portland, Oregon will be in the top ten hottest real estate markets in 2014, ringing in at #9.
Given the initial investment in purchasing a Portland home, Zillow predicts the break even mark to around 3 years, with financial gains each year after that.
The appreciation is Portland is predicted to continue for the foreseeable future.
Rent vs. Buy in Portland in 2014? Your best investment is in buying a Portland home.
Top 1% real estate agent in Portland.
Stephen FitzMaurice, Realtor
See my listing package here.
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