Re:Homeowner vs. Renter: Why Should You Ever Buy a House (a...
by geebee on Monday May 12, 2008 @05:04PM
(#187993)
The economist and the financial times started recommending renting a few years ago - and they acknowledge that this was a remarkable turn of events.
That said, I think that deliberately renting is a short term play - one that paid off for folks who stayed out starting 2004 or so. These people will probably be in a stronger position to jump in later (though it's incredibly hard to know exactly when... and I suspect this bust will go on for a long, long time).
That said, when I was looking for apartments in SF a few years ago, I met people over the age of 50 who were losing their rent controlled apartments. They were truly shocked at the prices, and were angry about it. Of course, I'd never actually come out and say this, but I thought it: "you've been in SF for 25 years, was there really never a good time to buy?"
Maybe not. I grew up in SF, and over the course of my life, housing has gone from quite expensive ( early 70s) to very expensive (late 80s) to brutally expensive (early 00s). I actually think that a lot of people just never quite managed to get a toehold, and I feel bad for them.
Personally, I'm making payments on an expensive 1200sqft house with a little yard in an unfashionable corner of the city. It may well be worth less than I paid for it, but I locked in a 30 year fixed loan, and I'm not struggling to pay the morgage (though it is a big chunk of my pay).
When I bought, I actually would have predicted a downturn as well. But I don't really act on those beliefs - any more than I get into and out of equities based on where I see the stock market going. My best guess is that housing has a lot further down to go (something I believed as early as 2002 or so) - but my guess is no better or worse than what any other astute reader of the business section could come up with. But I'm a lot more confident in my belief that when I'm 55, I'll be glad that I own my hous and that I'm not worrying about whether I'll lose my rent controlled apartment.
I still think that starting early, investing in stocks and owning your own house, is by far the winning long term strategy.
That said, I think that deliberately renting is a short term play - one that paid off for folks who stayed out starting 2004 or so. These people will probably be in a stronger position to jump in later (though it's incredibly hard to know exactly when... and I suspect this bust will go on for a long, long time).
That said, when I was looking for apartments in SF a few years ago, I met people over the age of 50 who were losing their rent controlled apartments. They were truly shocked at the prices, and were angry about it. Of course, I'd never actually come out and say this, but I thought it: "you've been in SF for 25 years, was there really never a good time to buy?"
Maybe not. I grew up in SF, and over the course of my life, housing has gone from quite expensive ( early 70s) to very expensive (late 80s) to brutally expensive (early 00s). I actually think that a lot of people just never quite managed to get a toehold, and I feel bad for them.
Personally, I'm making payments on an expensive 1200sqft house with a little yard in an unfashionable corner of the city. It may well be worth less than I paid for it, but I locked in a 30 year fixed loan, and I'm not struggling to pay the morgage (though it is a big chunk of my pay).
When I bought, I actually would have predicted a downturn as well. But I don't really act on those beliefs - any more than I get into and out of equities based on where I see the stock market going. My best guess is that housing has a lot further down to go (something I believed as early as 2002 or so) - but my guess is no better or worse than what any other astute reader of the business section could come up with. But I'm a lot more confident in my belief that when I'm 55, I'll be glad that I own my hous and that I'm not worrying about whether I'll lose my rent controlled apartment.
I still think that starting early, investing in stocks and owning your own house, is by far the winning long term strategy.