In Philadelphia - mentioned in the article - there is a 2% transfer tax, paid by both parties. Add 6% realtor fees, and you typical need to make 10% profit on a

In Philadelphia - mentioned in the article - there is a 2% transfer tax, paid by both parties. Add 6% realtor fees, and you typical need to make 10% profit on a house/condo/apartment just to break even - this, of course, not counting the cost of insurance, home maintenance, taxes, etc. Add those costs in, and it typically needs to be 15-20% appreciation (adjusted for inflation, of course, so add a few more points) to see any profit at all. This makes buying worth while only if you're planning to hang around for at least a decade or more. We bought a 900sq ft 1br condo 7 years ago. Between mortgage, taxes, parking, condo fees, etc., our out of pocket was ~$2600. Seven years later, renting a 2br 1200 sq ft. condo in a more desirable neighborhood with garaged parking is ~$350 less per month. The article is so overly simplistic it's ridiculous. Buying is not by default cheaper, even over the long term. Over 25 years it can be forced savings, but even that privilege is paid for with interest. At the same time I could be investing our savings and it will compound in to a nice chunk of change, that I bet might be around the profit margins of buyers, minus all the expense.