Anonymous User wrote:guano wrote:Anonymous User wrote:Where does saving for a down payment on a house fit into this? Paying rent continuously is not a good idea, as you growing NO equity!
I just realized thus wasn't addressed properly.
The above is a freaking retarded boomerism.
Renting is cheaper than buying and traditionally home appreciation tracks inflation. Doesn't mean buying is always wrong (homeowner here). But the above is a bad reason. Don't even think about buying unless you're committee to spending at a minimum the next 5 years there - 10+ would be better
Look at the Texas housing market before you jump to such illogical conclusions!
Yeah, cause housing booms are guaranteed to go up forever.
There are better ways to speculate in real estate
Edit I realize that wasn't what was being referred to.
The way mortgages and closing a work the value of the home needs to increase by about 10% to break even. This takes time.
Compare the purchase price to renting. If the purchase price is more than 15 times the annual rent, it's probably a bad idea.
Yes, these are broad statements and yes there are exceptions, but do the research