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(ABC News)   Sure, wages my be stagnant, health insurance for all seems like a distant memory, and you're falling deeper into debt, but NOW'S A GREAT TIME TO BUY A HOUSE   (abcnews.go.com) divider line
    More: Interesting, Real estate, Real estate pricing, U.S. home prices, Dow Jones Industrial Average, housing market, Dow Jones & Company, aftermath of last year, Commerce Department  
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485 clicks; posted to Business » and Main » on 30 Nov 2021 at 3:56 PM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2021-11-30 1:32:24 PM  
Realtors will never tell you it's anything but a great time to buy a house.

Market is up? Get in before prices go even higher!
Market is down? What great values! Prices will only go up!
 
2021-11-30 1:38:07 PM  
Never buy something that has had record price increases for a stupid amount of time.
 
2021-11-30 1:45:55 PM  
The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.
 
2021-11-30 4:09:23 PM  

mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.


THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).
 
2021-11-30 4:09:28 PM  
It's a great time to sell a house. It's a terrible time to buy a house.
 
2021-11-30 4:16:24 PM  
If you can afford the payments, have enough of a down payment for an equity cushion and want the house just buy it.  Trying to time any market is a pointless endeavor.
 
2021-11-30 4:17:30 PM  
Hell, I listened to a perky realtor recently who was sooooo excited about selling houses in an area contaminated with TCE and vinyl chloride. Such good deals, and all the local agents were excited about the area. Thought my head was gonna explode.
 
2021-11-30 4:17:56 PM  
To be fair,
Now's a great time to buy a house - IF your main problem is figuring out what to do with all that extra cash in the bank.

Probably not a great time for those of us with a bit less, or even an average amount...
 
2021-11-30 4:20:13 PM  

nmrsnr: It's a great time to sell a house. It's a terrible time to buy a house.


This.

The only fear (if you are in the market to buy) is that it might be a worse time to buy a house next year, and the year after that.

Construction is up, but not by enough to wipe out the backlog of houses that weren't built after the 2008 crash, so I expect prices to continue to go up.
 
2021-11-30 4:21:23 PM  

sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).


The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.
 
2021-11-30 4:34:01 PM  

neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.


I turned a foreclosed ranch into a huge colonial by buying at the right time and selling at the right time.

A starter home builds equity and makes it easier to move to the next home.
 
2021-11-30 4:34:10 PM  

neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believeD in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.


FTFY
 
2021-11-30 4:35:51 PM  
I am either lucky or not, I built a new house and closed 12/31/19, and then was able to refinance for a lower rate earlier this year when rates were down.

Maybe I should play the lottery.
 
2021-11-30 4:44:50 PM  
Now is a terrible time to make any major purchase.  Everything is overpriced.
 
2021-11-30 4:46:23 PM  
A mortgage is cheaper than rent in my area.  So of course the next time I move will be when I buy a house.  Which, hopefully, is next Spring.
 
Juc
2021-11-30 4:59:39 PM  
My realtor tried to tell me I was buying a starter house.
I kept telling him I've no intention to move anytime soon, starter shmarter.

He was also big on trying to sell me houses I don't want to live in because they were good investments.

I get his perspective and all, but seeing the place as somewhere to park money instead of a place to live would lead me to being miserable for years more than necessary until I got a house I actually wanted.

if a house people actually want to live in costs a million or two, maybe the price of housing is a bit batshiat insane.
I'm happy enough with my little spot, bloody well impossible to find houses that have ceilings high enough that I don't scrape my knuckles when I stretch anyway so I'm figuring I'm pretty lucky in the end.

Feel for the kids now, gotta be born to wealth now a days to have a hope of owning a home.
 
2021-11-30 5:03:15 PM  

sleze: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believeD in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

FTFY


One of the Weenerss from my BiL when he saw my new house, 10 years ago, "Oh wow, what a great starter home".  In the meanwhile, I've payed off the vast majority of the mortgage, renovated portions, plan on renovating other portions, and he's that guy from the commercials "How do I do it?  I'm in debt up to my eyeballs", with a house that's 3x our mortgage, 2x our sqr footage, and already talking about how it's to small for his family and it's time to buy again.
 
2021-11-30 5:16:11 PM  

sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).


I basically did the same thing, minus the kids.  I bought this place in 2012 as a starter home thinking I'd be in it maybe 5-6 years and then buy something better.  I fixed it up and made it worth more, to the point it's just as good as other houses I could afford in 2019, unless I was basically going to buy the shiattest house in a slightly better neighborhood, and do the same fixing up for 5-6 years and 25k+ additional investment.  With the price of houses now, I think I'll just stay right here, especially when I was able to refinance into a next-to-nothing interest rate this year.
 
2021-11-30 5:17:13 PM  

neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.


Fark user imageView Full Size
 
2021-11-30 5:19:53 PM  

squegeebooo: sleze: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believeD in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

FTFY

One of the Weenerss from my BiL when he saw my new house, 10 years ago, "Oh wow, what a great starter home".  In the meanwhile, I've payed off the vast majority of the mortgage, renovated portions, plan on renovating other portions, and he's that guy from the commercials "How do I do it?  I'm in debt up to my eyeballs", with a house that's 3x our mortgage, 2x our sqr footage, and already talking about how it's to small for his family and it's time to buy again.


farkin exactly. You just described everyone I've known in real life that buys into the starter home shiate.

Of course, it doesn't help that most people that buy into that shiat also greatly admire the McMansion and feel like they aren't keeping up with their frat bros if they don't upgrade by 1000 sq feet every 5 years.
 
2021-11-30 5:31:21 PM  
I'm too busy slowly replacing the finishes in my apartment that my kids keep exploding because a) they're kids and b) who the hell buys LITERAL PAPERBOARD FOR FARKING FINISHES!?

I will confess to one error on my part; I bought $2/ft flooring to replace the unbelievably shiatty carpet and linoleum they put in (hey, 30 year residential warranty, this should get us what, five?) Yeah, no. The stuff barely lasted a year before crumbling at the seams. Do not cheap out on flooring, seriously.

/Honestly, it's so frustrating sinking thousands into a place that's not mine so I don't pay them thousands when I leave only for them to screw the next guy with the same garbage building materials.
//Seriously, who does this!?
Fark user imageView Full Size
 
2021-11-30 5:42:30 PM  

neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.


Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?
 
2021-11-30 5:45:53 PM  

quo vadimus: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?


In some markets it might be. But really it's the implanted-by-shiatty-tv- "starter home" mentality property ladder shiat that leads people into miserable lives of forever debt to keep up with their frat bros.
 
2021-11-30 6:10:49 PM  

neongoats: quo vadimus: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

In some markets it might be. But really it's the implanted-by-shiatty-tv- "starter home" mentality property ladder shiat that leads people into miserable lives of forever debt to keep up with their frat bros.


or its an older concept that you cant seem to wrap your head around.

you know a home a young couple buys when first starting out before adding more people to their family requiring more space. Sure a concept few might have access to these days but thats what a starter home was and what they mean when its used to describe a residence

Frat Bros ? are you 10
 
2021-11-30 6:12:01 PM  

neongoats: quo vadimus: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

In some markets it might be. But really it's the implanted-by-shiatty-tv- "starter home" mentality property ladder shiat that leads people into miserable lives of forever debt to keep up with their frat bros.


I think I might've made assumptions about what you meant. I totally agree about the "life of debt" thing, and apologize for the snideness. I was incredibly happy with the first (very affordable) home we ever bought, and would've stayed there for as long as I was in the area. She... was a ladder-climber type. Not sad at all to be rid of her. Sad to have lost the house. Even sadder my dog couldn't spend her last years there. csb blah blah.
 
2021-11-30 6:17:25 PM  

bluorangefyre: A mortgage is cheaper than rent in my area.  So of course the next time I move will be when I buy a house.  Which, hopefully, is next Spring.


Good luck. It definitely feels better.
 
2021-11-30 6:21:41 PM  
I don't understand the "starter home" concept for the simple fact of how much of a farking pain in the ass it is to move.  Why do it more than you absolutely have to?
 
2021-11-30 6:32:04 PM  

kindms: neongoats: quo vadimus: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

In some markets it might be. But really it's the implanted-by-shiatty-tv- "starter home" mentality property ladder shiat that leads people into miserable lives of forever debt to keep up with their frat bros.

or its an older concept that you cant seem to wrap your head around.

you know a home a young couple buys when first starting out before adding more people to their family requiring more space. Sure a concept few might have access to these days but thats what a starter home was and what they mean when its used to describe a residence

Frat Bros ? are you 10


You act like the assumption that people should spend their lives climbing a property ladder and trading up houses and debt is a given, rather than a perversion. Consuuuuume.
 
2021-11-30 7:09:58 PM  
Well, some of us aren't getting any younger, and finally got tired of getting farked by every shiatty landlord out there.
 
2021-11-30 7:20:28 PM  
I've been looking at a move to Arizona since I retired five years ago. Many of the houses I looked at have doubled in price. It's stupid.

It's looking more and more like renting will be the thing. We've owned half a dozen houses over the years, basically getting a free place to live after you put expenses against appreciation at selling time. I never got to enjoy the kind of profit people are grabbing now though.
 
2021-11-30 8:00:35 PM  

neongoats: kindms: neongoats: quo vadimus: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

In some markets it might be. But really it's the implanted-by-shiatty-tv- "starter home" mentality property ladder shiat that leads people into miserable lives of forever debt to keep up with their frat bros.

or its an older concept that you cant seem to wrap your head around.

you know a home a young couple buys when first starting out before adding more people to their family requiring more space. Sure a concept few might have access to these days but thats what a starter home was and what they mean when its used to describe a residence

Frat Bros ? are you 10

You act like the assumption that people should spend their lives climbing a property ladder and trading up houses and debt is a given, rather than a perversion. Consuuuuume.


noooo im just describing a type of real estate. smaller inexpensive homes that in a now bygone era were affordable to a young couple just starting out (i live in one).

and if it wasnt for my wifes parents leaving her a little money when they died there is no way I could have ever owned a home and i have had a steady good job for many years. so trust me im not a consuuuume type at all.

but I wish i could find a smaller house with more land.
 
2021-11-30 8:15:32 PM  
In NYC it's not crazy yet. I'm in contract right now, offered below ask and the seller is paying for some of the closing costs.
 
2021-11-30 8:24:05 PM  

edmo: I've been looking at a move to Arizona since I retired five years ago. Many of the houses I looked at have doubled in price. It's stupid.


Wouldn't it be stupid to move to a region that is naturally a desert and running out of water?
 
2021-11-30 8:32:13 PM  
Juc: "My realtor tried to tell me I was buying a starter house.
I kept telling him I've no intention to move anytime soon, starter shmarter.
He was also big on trying to sell me houses I don't want to live in because they were good investments."


My realtor was really good about not trying to upsell us on bigger or more expensive houses.  We told him exactly what we were looking for, and he helped us find the perfect place.  I ran into him recently though, and he started telling me what houses like mine are selling for now, and asked if I was interested in moving up.

This place didn't have every single thing we wanted, but we also kept the mortgage payments at a manageable level.  It's a bit tight at the moment, but I know the teens will be elsewhere soon enough, and we'll have lots of spare room.  I think my wife still isn't totally sold on it as a "forever home," but dammit, I hate moving, and this place meets all our needs.

And, thanks to the refi, the mortgage payment is down to about 15% of our monthly gross, well under the equivalent rent, and we have an actual four-bedroom house with a yard in the DC metro area.  I'm cool with that... I could pay extra payments, but... I'd rather put the savings into investments. What's the point in paying down a house as fast as possible with inflation rising and a <3% interest rate?

"Feel for the kids now, gotta be born to wealth now a days to have a hope of owning a home."

As I mentioned above... teens.  I want them to have the same chance to own their own homes one days... I'm trying to but bugs in their ears about saving and investing, and putting together a plan to help them graduate college debt free with at least a start to their own nest eggs.  I wouldn't say they were born into wealth, but I hope that their dad, goofy and pun-ridden as he may be, helps them learn financial literacy and future planning the way his old man did for him.
 
2021-11-30 8:48:20 PM  
Bought my modest house back in 1996. Holy fark I would not want to have to buy it today. I mean I guess it's good for me that the value has increased almost 500% since then but damn I feel sorry for young couples who are just starting out because very few of them are being paid enough to afford the mortgage they are going to have to take out to buy a starter home today.
 
2021-11-30 9:05:19 PM  

zeroman987: neongoats: sleze: mofa: The article said, essentially, that there's been insanely high appreciation but that's beginning to slow down. That suggests that this is a horrible time to buy a house.

THIS.  Bought our house in 2007.  The smallest, shiatiest house in the good school district was overpriced and beat up.  Although it was only supposed to be a starter house, we have been slowly fixing it up over the years.  But while it's price recovered, and then some, all the prices of the bigger houses around here ALSO shot up so we can't afford to move.  So now it is the forever house coontil all the kiddies graduate high school).

The problem here is that you believe in this starter-house bullshiat pawned onto you by reality tv house flippers and realty shows.

I turned a foreclosed ranch into a huge colonial by buying at the right time and selling at the right time.

A starter home builds equity and makes it easier to move to the next home.


Going with the market is the trick.

Me and the wife upgraded and bought a larger home in 2009. Took a hit on selling our small condo but not anywhere near the hit we extracted from the sellers of our current home. I would feel bad about how aggressive of a deal we struck if it wasn't for the fact that the sellers employer was covering the loss as part of an agreement to get them to move to another area. I think they were just thrilled to get it off their books since it had been sitting on the market for over a year vacant.

If been toying around with the idea of selling now to downsize since we no longer need the space (stopping at one kid instead of having the 2-3 we initially wanted). We can probably sell now and essentially have what we paid for it sitting in the bank after clearing our remaining mortgage debt and we haven't really done anything to the place.

The real difficulty is in finding a suitable home to buy, or rent until the market becomes more sensible (if it ever does), but I'd hate to move my daughter out of the school district so that limits my options. Shame, because if I wasn't tied to that, my options would be pretty solid since I drive an hour to work currently so lots of area I could have moved to and even shortened  my commute.
 
2021-11-30 9:48:45 PM  

quo vadimus: Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?


Building equity is just another name for "enforced saving". You could just save the amount you'd be spending on a mortgage and put that into an index fund.

Mortgage payments less than rent? Man, I wish I lived in such an area. Kind of hard to do when crappy houses are $1.5million.
 
2021-11-30 10:48:12 PM  

trialpha: quo vadimus: Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

Building equity is just another name for "enforced saving". You could just save the amount you'd be spending on a mortgage and put that into an index fund.

Mortgage payments less than rent? Man, I wish I lived in such an area. Kind of hard to do when crappy houses are $1.5million.


It all depends on the area in question and the goals of the individual in question. Buying is not a solution for everyone. Nor is renting. There are many scenarios I can see where renting is advantageous, just as I see numerous scenarios where buying is advantageous. Some depend on location, many depend on personal goals and level of commitment to a particular area. It's really an individual based decision with few "wrong" choices. Unfortunately sometimes those choices are largely nonexistent such as in your case where buying really doesn't seem like a practical solution if "crappy" homes are going for 1.5M.
 
2021-12-01 6:53:53 AM  

trialpha: quo vadimus: Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

Building equity is just another name for "enforced saving". You could just save the amount you'd be spending on a mortgage and put that into an index fund.

Mortgage payments less than rent? Man, I wish I lived in such an area. Kind of hard to do when crappy houses are $1.5million.


Are you in CA?  The way they implemented their property tax relief (Prop 13) not only limited property tax for people who bought back in the 70's, but also allowed the low tax rates to be passed down to children.  On top of that, it doesn't require the home to be a primary residence.

So, grandparents bought a house in the 50's?  It's still in the family, long paid off, managed as a rental property for income.  Since the taxes are low for these grandfathered rates, any newly sold property has a much higher rate to compensate. Let that go on long enough and nobody wants to sell (and reset the property tax rates).  It constrains the supply of homes for sale, while keeping a lot of un-mortgaged rentals on the market.  

For many, if not most places, a mortgage is cheaper than a home loan.  Our example:  when we bought, it would've been about the same either way (~$2200), with the extra cost of maintenance on the mortgage. Right now, I could rent a house similar to mine for $2800/mo, and thanks to a refi, the mortgage payment is $1900.  I'm not putting $900/mo into maintenance;  that's like a new roof every 2-3 years.

Even if the rent and mortgage+maintenance were the same, the mortgage would still come out ahead because you don't EVER recoup any of the rent.  The money is just gone.  If we lived here for 15 years and sold the house at the price we bought it, we'd owe less than that thanks to years of paying downthe principal, and having the monthly payments more or less detached from inflation.
 
2021-12-01 8:12:54 AM  
If prices are up 19.1% how is that a good time to buy?  It's a good time to sell.
 
2021-12-01 9:00:51 AM  

trialpha: quo vadimus: Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

Building equity is just another name for "enforced saving". You could just save the amount you'd be spending on a mortgage and put that into an index fund.


Yes, it is a kind of enforced saving. But I find it's commonly left out of rent vs own comparisons. There's some decent reason for that - I think home equity is pretty difficult/expensive to access until you sell, so most wind up never touching it until then. But a lot of equity can also be built through property appreciation. That's far outstripped principal payments in our case, especially with my multi-decade refinancing binge.

I think I've said here before I don't dismiss renting as dumb. Like most, I've done it. I've known multiple people renting well enough to know that it's the smart choice for them too. But I think for most people, most of the time, buying is the much better financial choice.
 
2021-12-01 11:13:35 AM  

trialpha: quo vadimus: Far better to rent and save for ten more years, paying more than a mortgage, building zero equity, until they could've bought a better house, right?

Building equity is just another name for "enforced saving". You could just save the amount you'd be spending on a mortgage and put that into an index fund.

Mortgage payments less than rent? Man, I wish I lived in such an area. Kind of hard to do when crappy houses are $1.5million.


In most places not in a major metropolitan area, rent is far more than a mortgage + escrow.  Half my neighborhood is townhouses that people own and half is apartments.  My first mortgage + escrow on my townhouse was $798 (1700 sq ft 2 bed 2.5 bath 2 car garage).  The apartments START at $1300 a month and that's about 725 sq ft.  In most places it's cheaper to buy and build equity with the money you aren't spending on rent.
 
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