States Where it’s Cheaper to Rent than Buy
Catey Hill writes at MarketWatch.com that there are 8 states where it’s cheaper to rent than to buy a home:
It’s cheaper to rent a home versus buying one in just eight states in America, according to an analysis of monthly costs released Monday by GoBankingRates.com. Those states, Hawaii, Montana, Utah, Idaho, Colorado, Wyoming, Delaware and Oregon, are joined by the District of Columbia. The analysis compared the monthly cost to rent the median-priced single-family home in each state with the monthly cost of owning that same home. The latter expense includes mortgage payments (assuming a 20% down payment and a 30-year fixed loan), property taxes and insurance.
This comes at a time when rents have been rising rapidly, explains Kristen Bonner, lead researcher on the study. In 2015, apartment rents increased faster than they had at any time since 2007. And while they have fallen slightly this year, according toan analysis by Trulia released in June, the real-estate site notes that “relative to historical pricing, rents are still very high.”
Rent vs. Buy: Inflation
Since 2005, rental pricing has increased steadily. Meanwhile, the cost of buying a home is still trying to recover.
Are There Benefits between Renting and Buying a Home?
It’s Not a Housing Bubble, It’s Just Expensive (Bloomberg)
Poorer than their parents? A new perspective on income inequality (McKinsey & Co.)
Have You Thought About Tapering, Mario Draghi? (Bloomberg)
News broke this morning that Ultimate Fighting Championship (UFC) had sold itself to a consortium of buyers led by talent agency WME-IMG. UFC is one of the best known providers of mixed martial arts entertainment. UFC President, Dana White and investors Frank and Lorenzo Fertitta purchased the franchise in 2000 for $2 million. Today they’re selling the business for $4 billion, a return of 199,900%! The New York Times explains:
It will be a windfall for U.F.C.’s primary owners, the longtime casino entrepreneurs Frank and Lorenzo Fertitta, though they will stay on as minority investors.
The brothers bought U.F.C. in 2000 for just $2 million at a low point for the league, after the promoter spent years and millions of dollars battling to win approval from state athletic commissions.
Before the arrival of the Fertittas, U.F.C. had begun climbing in popularity, thanks to early stars like Royce Gracie and Ken Shamrock and a reputation for being just shy of civilized. But opposition loomed from Senator John McCain of Arizona, who derided the sport as “human cockfighting,” and former Governor George E. Pataki of New York, who banned the sport from the state.
The early years under the brothers — who run the business through a company called Zuffa, the Italian word for “fight” — were still tough, with million-dollar losses weighing over the enterprise.
But the Fertittas took the brand to a new level, with more advertising, more effective social media marketing and better distribution through partnerships like the one with Fox. Licensing money for video games, clothes and more began to roll in. U.F.C.’s revenue was about $600 million last year.