MikeWhitney wrote:
Adam Ligon wrote:
Buying always makes more sense than renting, always.
You know, I used to beat that drum too, but I think there is one situation where renting makes a lot more sense -- in "hot" markets around the country, people are buying houses simply as appreciation investments expecting to flip them after a few years and make a killing. In these markets, the prices are usually out of reach of first-time home buyers, but all these investment buyers create a flood of rentals and thus relatively low rental prices, many not caring that the rental income doesn't cover their mortgages. ie, cheaper to rent than buy. I bet that't the case around DC and in parts of CA, but I agree that here in Raleigh it's not happening at that level.
I'm in one such market right now. Seattle housing prices are positively ludicrous, but rental prices are downright reasonable in comparison. I've got an apartment downtown with more space than I and my dog need, I can walk to work in 20 minutes or to Lake Union in 5 (I've fueled my car once since I've been here), I've got no property taxes, small utility bills, no freakin' geysers sprouting out of my front lawn or trees punching holes in my roof or falling on my car, and so on and so forth. Salaries are commensurately higher, and I figure I'll do better than I did with my house back in Durham (once it sells, that is) by plowing the extra cash into actual investments. Houses are a PITA to sell sometimes, too.
Some of my friends who've bought condos or houses have to contend with long commutes and high property taxes all the while paying high mortgages that are mainly interest, which goes down the tubes as surely as rent does.
P.S. One of these friends lives just up the street from two very, very gay men with His & His red and blue VW R32's.
However, they look nothing like Dan and PJ.
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