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You are still building equity as opposed to throwing money away to a landlord. And there are a lot of other intangibles such as stability (no more rent increas

by pyoung 11y ago

You are still building equity as opposed to throwing money away to a landlord. And there are a lot of other intangibles such as stability (no more rent increases or evictions) and freedom to modify/alter/improve the property. These are probably much more important features to potential home owners (especially ones considering/having children). And another thing to consider, for most homeowners a hot real estate market only benefits them if they are willing to move to a lower priced market or downsize their home. Moving laterally or trying to upgrade during a hot market means you are exposed to the same percentage of price increases as everyone else. The only people that really benefit from hot real estate markets are investors and landlords.

refurb 11y ago
You are still building equity as opposed to throwing money away to a landlord. That's a fallacy. Whether or not you rent a place (pay another person to buy it) or you buy it yourself, buying is not always better than renting. There are many situations where if you rented your whole life you'd be better off than owning, even assuming housing appreciates. I was renting (after owning for many years) right before the housing crash in 2008. I paid ~$30K to rent a place over two years. I know folks who bought who lost 3 times that owning a house. When I wanted to move I just gave the keys back. The landlord took the hit, not me.
dionidium 11y ago
There is no such thing as throwing money away to a landlord, unless you also believe that every other case in which you use money to buy something you desire is "throwing money away."
- Jtsummers 11y ago
  Whether it's throwing money away or not depends on the future value of the good, expected duration of ownership, and the utilization rate. Same as the purchase versus rent decision on every other purchase.

by pyoung 11y ago

refurb 11y ago

You are still building equity as opposed to throwing money away to a landlord. That's a fallacy. Whether or not you rent a place (pay another person to buy it) or you buy it yourself, buying is not always better than renting. There are many situations where if you rented your whole life you'd be better off than owning, even assuming housing appreciates. I was renting (after owning for many years) right before the housing crash in 2008. I paid ~$30K to rent a place over two years. I know folks who bought who lost 3 times that owning a house. When I wanted to move I just gave the keys back. The landlord took the hit, not me.

dionidium 11y ago

There is no such thing as throwing money away to a landlord, unless you also believe that every other case in which you use money to buy something you desire is "throwing money away."

Jtsummers 11y ago
Whether it's throwing money away or not depends on the future value of the good, expected duration of ownership, and the utilization rate. Same as the purchase versus rent decision on every other purchase.