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If you are doing a financial comparison, you need to make sure you compare buying a home vs. renting one. And you need to factor in increases in rent every yea

If you are doing a financial comparison, you need to make sure you compare buying a home vs. renting one. And you need to factor in increases in rent every year, vs. increasing property taxes on a home. Where I'm from (midwest), a home gives you a lot more (and/or different) lifestyle than an apartment. For example, you typically have a garage where you can do your own auto repairs (hard to do that in an apartment parking lot), so you can save money there. And you have a yard and garden which a lot of people like (if you have pets, a yard makes midnight potty time easier). And you can store things such as a boat and/or camper on your property (unless you buy a home in a restrictive subdivision). Which opens up 3-day weekend camping / boating activities. Drawbacks of a house vs. apartment rental are more permanence (harder to pick up and move), which leaves the possibility of being stuck with bad neighbors if you are unlucky. Or not able to move to chase jobs (if you are in an area with limited number of employers).

ironjunkie 8y ago
yes, I fully agree with you. you need to do proper comparisons and calculation. After a lot of research I believe the New York time is one of the best online calculators: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal... Then there is everything that cannot be calculated: Pro of owning a home: 1) The emotional factor and pride of owning a home. 2) The fact that it is your home and have the freedom to change or do whatever you want Con of owning a home: 1) Your investment is extremely illiquid 2) You are stuck somewhere. Not easy to relocate 3) You probably bought something that is way bigger than what you actually need right now (Like most single couple will buy a home with multiple rooms in anticipation for kids, while they typically dont need that for the next X years, de facto losing more opportunity costs vs renting).

ironjunkie 8y ago

yes, I fully agree with you. you need to do proper comparisons and calculation. After a lot of research I believe the New York time is one of the best online calculators: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal... Then there is everything that cannot be calculated: Pro of owning a home: 1) The emotional factor and pride of owning a home. 2) The fact that it is your home and have the freedom to change or do whatever you want Con of owning a home: 1) Your investment is extremely illiquid 2) You are stuck somewhere. Not easy to relocate 3) You probably bought something that is way bigger than what you actually need right now (Like most single couple will buy a home with multiple rooms in anticipation for kids, while they typically dont need that for the next X years, de facto losing more opportunity costs vs renting).