In early May, the Wall Street Journal offended real estate professionals across the nation by publishing The New Math of Renting vs Buying, which suggests that in many markets it is actually less expensive to rent than buy. “I am not sure of their data, but I will say that their logic is flawed,” commented Anian Tunney, a residential real estate broker in Piedmont, CA.
According to “exclusive” data provided by Deutsche Bank, “the monthly cost of renting was lower than buying in 20 large metropolitan areas at the end of last year.” On the other hand, depending on the market, both Zillow and Trulia agree that home ownership is the way to go for people who plan to stay in the home for 2 to 5 years.
According to Tunney, the Wall Street Journal is making several flawed assumptions. First, is the presumption that renters have fewer expenses than homeowners. “Renters have just as many expenses; they just have fewer checks to write. Landlords make sure rent covers taxes and repairs, as well as creates a profit.” As a logical offshoot, Tunney remarked that, “renters are investing in their landlord’s future, not their own.” Owning a home is an investment. The equity owners build can finance everything from education to dream vacations – even dream houses. “A significant portion of home sellers are upgrading, some into the home of their dreams,” notes Tunney. One such dream home for sale in Piedmont is 87 Sea View Avenue, offered at $5,250,000, a three story masterpiece with pool, au pair quarters, and elevator.
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The Wall Street Journal also asserts that renters could make more money than owners by investing the difference of a mortgage payment and their monthly rent. “That makes a major assumption about human nature that is just not realistic,” claims Tunney. “Most people do not consider the monthly difference in expenses as a boon to invest – it is money to spend elsewhere. Having a residence requires a payment, yet for some reason homeowners are more likely to save than renters. Maybe it is a side effect of saving up for the down payment.”
Regardless of the assertions of the Wall Street Journal, in the Bay Area homes are still selling. An example of Piedmont houses for sale is 199 La Salle Avenue, offered at $1,875,000.
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About Anian Tunney, Broker Associate
Anian Tunney is an agent broker with The Grubb Company. According to statistics collected by East Bay Regional Data, Inc., she was the 2013 number one real estate agent in Piedmont, CA for the number of units sold and sales volume. Additionally, Tunney is always in the top two in yearly real estate sales for The Grubb Company’s Piedmont, office. She is known for her knowledge, experience, and network in the Piedmont community; qualities which are invaluable for finding that special home or buyers for her clients. Tunney also supports the Piedmont schools in a big way.
A fifth generation Piedmont resident, Tunney has been with the Grubb Company for over 30 years. She raised her family of four in Piedmont and is active in community projects such as the Piedmont Beautification Foundation, and the East Bay Museum Auxiliary. Her grandmother, Amy Sutton, was a real estate agent, and now Anian works with her daughter Adrienne Krumins, making Piedmont Realty truly a family vocation. Tunney negotiates with grace and clarity of purpose. She can be contacted at 510-339-0400 ext 217, and at tunney(at)grubbco(dot)com. Her website is aniantunney.com.
Contact Information
Anian Tunney
The Grubb Company Real Estate Brokers
Oakland, CA 94611
510-339-0400 ext 217
tunney(at)grubbco(dot)com
aniantunney.com
aniantunney.com/blog
