2 ms·
This isn't the right way to look at a home purchase. Seems like it was written by someone who hasn't bought a house. Homes go up in value, so in the long-run
by dbg31415 9y ago
This isn't the right way to look at a home purchase. Seems like it was written by someone who hasn't bought a house.
Homes go up in value, so in the long-run you tend to make money or at least break even. A lot of this depends on how into "keeping up with the Jones" you are. If you remodel your house a lot, need the latest and greatest garage door opener and bathroom sinks... yeah, you're sinking money into the property that you won't ever recover through sales. BUT... that's OK! Because it means you have the house you always wanted, and y'know... we only go around once.
Buying vs. renting. Guess what, you're going to spend money putting a roof over your head. That's life. Does it cost more to buy or rent? Over 5 years? 10 years? 30 years? In the long run it's almost always better to buy. But short term, if you know you're only in a city for 5 years... maybe just rent. That's fine. No harm no foul, you're advancing your career... or just living. Don't fret it too much. If you're happy, you're happy.
What do you need? Do you need a house with lots of bedrooms for your kids / family? Do you need a year for your dogs? Do you need quick walking access to the coffee shop near the train station? There's no right answer, buying vs. renting... for people who move every 2-5 years, pretty much works out even. (Having done both I can say from experience that buying just ties up a lot of your savings and keeps you from being able to spend it.)
Anyway a house is not "years of life" -- it's something you live in for years of your life. You can buy as an investment... and you'll make money. You can trade up ever 2 years... and it's probably better to just rent. Roots are great as long as the local economy is doing well, but if it's not... hey, you've gotta move to keep ahead. Plenty of ways to get ahead in life, a house can be one, or moving city to city as a consultant is one. There's no wrong answer.