I found an interesting article over at bankrate.com today. The article basically compares housing to stocks – looking at a properties price versus renting cost, and the ‘dividend’ earnings coming from owning a home, such as tax write offs, rental income, etc.

 
If we calculate the current price of a home, and divide it by the rental earnings, we would find that on average the US ‘home P/E’ is about 20 – which is still a bit high. The overall average is 16, says economy.com. If you’re still on the fence, this is a great resource to see what you should actually be paying for the property, and if it’s a good time to buy or not.

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Tags: dividend, p/e, real-estate, Stocks