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I don't think most Americans buy houses as investments. There are other reasons: You usually find yourself in a better neighborhood with fewer hassles if you

I don't think most Americans buy houses as investments. There are other reasons: You usually find yourself in a better neighborhood with fewer hassles if you buy vs. rent. Stocks and bonds aren't any better anymore--the bottom could drop out again anytime and leave you with half or less of what you previously had. We're in a crap storm of epic proportions in this country, but we avoid the reality of it.

tptacek 10y ago
My experience and intuition suggests that the opposite is true, and that you'll generally end up in nicer places and in better neighborhoods if you rent. Looking at current house rental listings in Oak Park, I see several in nicer neighborhoods that are less than my rent; in other words: I believe I pay a premium to to own here. That was my experience in Ann Arbor as well.
- cmdrfred 10y ago
  This isn't the case in most of New Jersey or Pennsylvania. Cost to rent a crappy 2 bedroom apartment (with the people below blowing smoke up into your bedroom) is the same as a 3 bedroom house, property taxes, and insurance. It really is location, location, location as they say.
  - tptacek 10y ago
    Can we test this? I'm ready to be convinced with evidence! Let's use a specific market, and just look at the listings.
    - cmdrfred 10y ago
      Well in my home town you can look at Zillow to see home prices (http://www.zillow.com/homes/for_sale/Warrington-PA/56739_rid/150000-225000_price/527-790_mp/40.284632,-75.103913,40.209294,-75.221158_rect/12_zm/ http://www.zillow.com/homes/for_sale/Warrington-PA/56739_rid...) all of these are priced to give around or below $1200 mortgage all told (taxes,fees,insurance even if you went in with a low down payment). Here are the apartments that are available (http://www.apartmentguide.com/apartments/Pennsylvania/Warrington/2-beds-1z141y8/ http://www.apartmentguide.com/apartments/Pennsylvania/Warrin...) $1200 is really the minimum for a 2 bedroom apartment here. There are a few that are maybe $100 - $200 lower, but I wouldn't want to live there.

tptacek 10y ago

My experience and intuition suggests that the opposite is true, and that you'll generally end up in nicer places and in better neighborhoods if you rent. Looking at current house rental listings in Oak Park, I see several in nicer neighborhoods that are less than my rent; in other words: I believe I pay a premium to to own here. That was my experience in Ann Arbor as well.

cmdrfred 10y ago
This isn't the case in most of New Jersey or Pennsylvania. Cost to rent a crappy 2 bedroom apartment (with the people below blowing smoke up into your bedroom) is the same as a 3 bedroom house, property taxes, and insurance. It really is location, location, location as they say.
- tptacek 10y ago
  Can we test this? I'm ready to be convinced with evidence! Let's use a specific market, and just look at the listings.
  - cmdrfred 10y ago
    Well in my home town you can look at Zillow to see home prices (http://www.zillow.com/homes/for_sale/Warrington-PA/56739_rid/150000-225000_price/527-790_mp/40.284632,-75.103913,40.209294,-75.221158_rect/12_zm/ http://www.zillow.com/homes/for_sale/Warrington-PA/56739_rid...) all of these are priced to give around or below $1200 mortgage all told (taxes,fees,insurance even if you went in with a low down payment). Here are the apartments that are available (http://www.apartmentguide.com/apartments/Pennsylvania/Warrington/2-beds-1z141y8/ http://www.apartmentguide.com/apartments/Pennsylvania/Warrin...) $1200 is really the minimum for a 2 bedroom apartment here. There are a few that are maybe $100 - $200 lower, but I wouldn't want to live there.