MM has it right. I only barely pay more for my mortgage than I did for rent previous to buying. It's a daunting process, but I'm sure you could find something you can afford. Maybe start with a condo. After that, Roth IRA. Invest the max tax free contribution every year you can afford it.
What you can't afford to do is rent! Renting=throwing money in the trash. At least with real estate, you're just setting your money aside, at worst.
unless your house loses value, which has happened to many. if you can't sell your house, then its not setting your money aside...the days of housing being a stable investment are long over. If you're going to live in your house..sure, its nice to own. but its a new world. or if your house payments don't let you live life. what good is a house if all you do is live in it?
I would have agreed with you 4 years ago, but right now real estate is extremely safe as an investment. And obviously you don't want to buy something you can't afford. But considering rent is a 100% loss, I don't know how people who have a choice to buy can do it.
Its not a loss if its shelter. real estate is still not "extremely safe", we still don't know where this economy is going. Its cheap to borrow money and prices probably won't drop much lower though. If anything, its going to be stagnant.
At the kind of rates that happen right now - renting instead of buying is about as stupid an idea as possible. All you need to do is find a small space and the monthly payment should be about as high as your rent - but it will offer you shelter and will build your equity.
Yeah, but I am paying less than $1000 a month in rent living a mile from the ocean. If I were to buy, I'd have to live somewhere I don't really want to, pay more money, throw a big down payment down (assume what, $40grand for a $200k place) , and deal with a lot of stupid crap like insurance, property taxes, maintenance, etc. I rent out of sheer convenience and because it doesn't really affect me financially. Keeping things simple.
If that works for you, then that makes sense. Renting in this part of the country is not like that. My mortgage payments are right on par, or cheaper, than the rents for similar places. Especially with so many people foreclosing on their houses. More people are renting, so rents are going up. Supply and demand.
I did some looking this summer in Hood River, The Dalles, Pine Hollow...area for some clients for whom I eventually found ten acres with a nice home in La Pine. Apparently they don't get "news" in the gorge and are completely unaware that the market has changed since 2006. Sellers are in the complete denial phase that Bend sellers went through 2 years ago and so of course nothing is selling as it is priced about 40% above current value. I expect the crash there to come late next summer after another year of no activity.
Yeah, if I wanted to "settle down" or something, I'd probably buy. Honestly, my lifestyle is not conducive to that though.
what it comes down to is a $1000 difference just in monthly cost alone. Thats not something I want to risk for me personally.
thats exactly it here. The people who are buying here, are people with money. Prices have dropped in a lot of places, but not as much here. Cant really find a house for less than $250,000 here.
Its more than that when you figure insurance, upkeep, property taxes, etc. What's the general rule...isn't it 20-30% of your household income on that stuff and you should be fine...if its creeping above that, you might be getting in over your head. House shouldn't be as important as having a safety net for when the apocalypse happens. I actually enjoy living a more minimalistic lifestyle with money spent on travels and enjoyment of life rather than a house, which I wouldn't personally enjoy that much.
Yeah its same with me.. Rent is a LOT cheaper than a Mortgage. But if they were on Par.. for sure I would be owning.
yep, so even more. Unfortunately around here, the difference of rent vs cost is just too high, and one is much more convenient as you said.
