The Rich Are Renting

by Minority Fortune

tuscanhomeThe real estate market has yet to recover. It’s still a buyer’s market with housing values steadily decreasing. With such paltry yields, it seems better to consider renting instead. Forbes reveals that the rich are currently renting themselves. Owners of expensive homes are opting to rent out their homes for a fraction of its value annually.

The cities with the biggest renting deals can be found in Chicago, Atlanta, Houston, and Boston. Wealthy homes in these cities can be rented out for amazingly low prices. It’s definitely a deal one should consider if they are looking to rent.

Forbes provides the following example:

Consider the situation in Chicago, which looked like a better deal for buyers than it did for renters several months ago. On average, buying a place in the city’s tony Gold Coast neighborhood last April would have cost roughly 11 to 12 times the amount you’d spend annually to rent the same or similar property. Now it would cost you more than 20 times the annual rent for equivalent digs.

Take the stately, 7,000-square-foot home for sale right now at 2708 N Lakeview in Chicago’s Lincoln Park neighborhood, built in 1915 and recently renovated. The cost to buy this five-bedroom home is $4 million. But the owners are willing to rent it out for $168,000 a year.

If one has the money and is looking for a place, they should consider renting out instead of buying. Forbes additionally suggests that you could take the extra money you would have put towards buying a home in a bond for guaranteed earnings. On the other hand, if you own a property that you cannot sell, consider renting it out for the time being until the market turns around.

*Image courtesy of LOOK Photography.
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