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Buying is as much a emotional decision as it is a financial one. You have to take into account not only the how much you can afford and how much you want/would

by hartror 16y ago

Buying is as much a emotional decision as it is a financial one. You have to take into account not only the how much you can afford and how much you want/would like your money to grow but what kind of lifestyle you desire. If the lifestyle that owning one's home affords is more important than the increased returns then perhaps you should buy. On the other hand if you are happy to rent for a decade or two you will likely end up richer. I am currently of two minds, I love the idea of being able to do what I like to my own home. But at the same time real estate isn't necessarily the best investment, though where I am (Melbourne, Australia) we've had massive growth in housing prices (somewhere in the order of 20%+pa off the top of my head) though it is slowing down now. One of my favourite bloggers Ramit Sethi has some strong opinions on the issue http://www.iwillteachyoutoberich.com/buying-a-house/ http://www.iwillteachyoutoberich.com/buying-a-house/

hartror 16y ago
Oooh I forgot another factor! Banks are pretty happy to let you borrow against your house. They're not likely to do so as easily with other investments. Means you can try to have your cake and eat it too if you're clever . . and perhaps a bit lucky too.
yummyfajitas 16y ago
How does your lifestyle change due to owning a home? While I realize many people simultaneously buy and upgrade, why can't you upgrade to a rental?
- duck 16y ago
  Two reasons - first, you may not have the right to do it depending on the lease and second, you will not recoupe any of the costs.
duck 16y ago
Another piece of the lifestyle choice is control. While renting you are at the mercy of the landlord. I found this out last year when our landlord decided she wanted to move back into her house. Even though we had a lease, and the law is suppose to protect you, it doesn't stop them from making your life miserable - and that cost isn't worth any amount of money to me.
- virinvictus 16y ago
  That's bleeding horrible, and I agree. I've had some pretty miserable landlords (though I still continue to rent, and will not buy a house (at least not in the city I'm living in)).

by hartror 16y ago

hartror 16y ago

Oooh I forgot another factor! Banks are pretty happy to let you borrow against your house. They're not likely to do so as easily with other investments. Means you can try to have your cake and eat it too if you're clever . . and perhaps a bit lucky too.

yummyfajitas 16y ago

How does your lifestyle change due to owning a home? While I realize many people simultaneously buy and upgrade, why can't you upgrade to a rental?

duck 16y ago
Two reasons - first, you may not have the right to do it depending on the lease and second, you will not recoupe any of the costs.

duck 16y ago

Another piece of the lifestyle choice is control. While renting you are at the mercy of the landlord. I found this out last year when our landlord decided she wanted to move back into her house. Even though we had a lease, and the law is suppose to protect you, it doesn't stop them from making your life miserable - and that cost isn't worth any amount of money to me.

virinvictus 16y ago
That's bleeding horrible, and I agree. I've had some pretty miserable landlords (though I still continue to rent, and will not buy a house (at least not in the city I'm living in)).