Inflation or deflation & your finances

[Petunia 100]

I've been a homeowner most of my adult life. I've owned three homes. The value in owning them has mostly been in locking in (somewhat) housing costs. With the exception of the second home, there wasn't much appreciation.

There is a certain enjoyment in owning your own home. But in an expensive market, that enjoyment can certainly cost you.

I don't think it is a bad strategy, in some markets, to rent and invest your money elsewhere. The time will come when you are ready to leave that market and then you will have the capital to buy in a more affordable market. Of course, if you intend to stay in that expensive market permanently, this strategy will not work.

[kork13]

Says the guy who owns rental properties! Preaching much, are you? I am sorry I even posted my info here as it seems like people just have to stamp down and kick people who are already down. Must give you people a high to feel so superior to people likw me that you just have to lash out & preach things you would never do yourselves ? I don't know if you believe in basic human kindness (obviously not) but apparently some of the posters here think it ok to put down someome who has the same dreams as they do but are in a bad place and venting here.

If you must hypocritically accuse me of "self entitlement" or patronizingly "advice" me to "rent at market rates for life" then why don't you wait until I ask you for down payment assistance? Until then if you have nothing nice to say maybe just don't say anything?

My apologies if I came across as patronizing or accusatory -- not my intention at all. Quite the opposite, in fact -- there's nothing at all wrong with renting if that's what's most appropriate given a family's financial circumstances. It makes very good financial sense to rent until ready to buy.

I'm only pointing out that the US is exceptional in offering home ownership so easily. Most places I've been, a 20-50% down payment is the bare minimum requirement to even consider trying to buy a house. It's a false premise to believe that buying a house of any price with zero down, or 5%, or whatever is smart. It's asking for trouble by overextending a family's finances like that.

Yes, I do own a (single) rental property. But I did so conservatively, which is what I'm suggesting. I bought that house 25% down, and paid it off in 6 years, because the price was only ~2x my annual income. People should aim to buy a house, when they're ready for the increased expenses & other obligations that home ownership entails.

[~bs]

is this sarcasm? Renting at market rates for life? Wow!

It wasn't sarcasm. Many people do it. In fact there's a large community of people that say that renting is better than owning. Instead of saving 20% down in a high cost of living area, you can invest it, and generate a large return. you also dont have a lot of the extra costs that come with owning a property, and your main obligation is just rent amount and it's much easier to move if you need to. Flip side is that you don't get the eventual payoff of the property, and as I said, will pay market rents for life. If you can plan your finances around it, there's nothing wrong with that.

[LivingAlmostLarge]

scallywag why not show us rent and income numbers and maybe we can make suggestions on how to buy in your area. Or if it's insane and what you should buy out of area. We can make you feel better perhaps telling you that it's INSANE STUPID CRAZY to buy! Then you'll feel okay renting. I see nothing wrong with that.