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Author(s)

Craig Furfine

This article examines the inadequacies of two commonly used financial tools in homebuying decisions: cash flow analyses of the buy-versus-rent (BVR) decision and home affordability calculations. Standard BVR analyses generally fail to account for the interdependence between rent and home price growth and the differing risks associated with homeownership and renting. Similarly, home affordability calculators prioritize lender criteria rather than aligning housing decisions with buyers’ long-term financial goals. These limitations highlight an opportunity for financial professionals to provide more comprehensive guidance and assist clients in making informed decisions that align with both financial feasibility and personal objectives.
Date Published: 2025
Citations: Furfine, Craig. 2025. On the inadequacy of common financial tools for potential homebuyers. Journal of Financial Service Professionals. (4)