We live in Boston and are on the fence on whether we should rent or
buy an apartment.

Essentially we can afford to buy an apartment in the range of
$700-800K but so far have not pulled the trigger because of the fear
that we will be buying at at the top of the market. So far this has
not been a bad decision because rents are so low (the Massachusetts
economy has been a little soft) and we have not really missed
anything.

However as time goes and the economy turns around we cannot help but
wonder. We see the rental market start to pick up but wererent sure
what would happed to the real-estate market (as rates are expected to
go up)

PLease can someone give me a well through answer on what should we do?
Also the more facts you can use to back up your view the better (i.e.,
interest rates,
historic massachusetts/boston employment and real-estate trends etc in
your analysis). A great answer will get a tip!

Hi there - I am a Boston native and am closing on a new property
(condo) in a few weeks.  Of course there are a number of ways to
answer your question and a number of vital determining factors, so I
will provide some info that could help in general.

- How long are you planning on being here?  That's probably the big
question.  Fool.com (and many others) have a great calculator to look
at the picture from a purely financial standpoint.  My wife and I
lived in Atlanta for 2 years and did not buy because we knew it didn't
make sense, even though we could have very easily afforded it.

- Yes, rents ARE soft right now, but keep in mind that depending on
where you'd like to live, the market can change RADICALLY come 9/1,
when, of course, the 10's of thousands of college students return to
school.  If you do go the rental would strongly recommend using
craigslist.org or boston.com to find a unit being rented by the owner
to avoid agent fees.

- As far as "buying at the top of the market" goes--again, if you'll
be here for a certain number of years (5+, in my book), I would find
that hard to believe.  There ARE still undervalued parts of this
city--Chelsea, where I bought--and East Boston come to mind.  You'll
pay $100 - $200 LESS per sq. ft. just because those places have a bad
(and generally unfounded) reputation.  I was always taught that there
is never really a bad time to buy real estate.

- Last note: Not sure where you're coming from, but if you're renting
you're looking for an apartment, but if you're buying you're looking
for a condo or a house . . . you'll get funny looks if you're looking
to buy an apartment :).

You'll also generally get a 5% discount on anything for talking up the
Sox and/or wearing Sox gear.  If you're a Yankees fan I recommend
staying where you are.

Good luck.


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