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Who says the market is sensible? There's a lot of noise out there. Someone buying property not only has to guess that an area will go up in value, but they al
by usaar333 17y ago
Who says the market is sensible? There's a lot of noise out there. Someone buying property not only has to guess that an area will go up in value, but they also have to factor in:
1) inflation rates (higher inflation is much better)
2) tax changes (e.g. the passage of prop 13 in California helped investment property owners greatly)
- hugh3 17y agoWell I'd never say the market was sensible at any given place and time, but I think it tends to fluctuate back and forth somewhere around the vicinity of "sensible". If you decide that renting is going to be cheaper than buying for the rest of your life then you're gambling on the assumption that the market stays on one particular side of "sensible" for decades.
- Retric 17y agoYou can always switch from renting to buying, it's much harder to go the other way.
- hugh3 17y agoHow's that? Sell house, sign lease, you're done. Only a problem if you're underwater and I'd strongly advise against buying for anyone in a position where winding up underwater is a strong possibility (ie anyone with less than, say, a 20% deposit).
- usaar333 17y agoEven if you aren't underwater, it still sucks to lose a quarter of your down payment because the value of your home dropped 5% in a year. Also, you lose 6% total from real estate commissions; consequently, it is much harder to move between owned homes and rented ones.
- deleted 17y ago[deleted]