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Originally Posted by sperry
I think you missed my point. If you can build equity faster than the market around you then sure, it's a benefit... but the cheaper houses build equity slower than the more expensive ones, so when it's time to cash in, you still can't afford to move!
Look at my roommate. His house as gone up in value like 80% in the last 10 months. However, he can't move because the cost of houses like his have all gone up that much.
You don't truely build equity until you own property that you're not living at. Paying a mortgage isn't much different than renting until you can afford to move to a new house and rent out the old one.
Also: here are my numbers on that calculator you posted
LINK
Assuming the market flattens out like I expect, I'll *lose* $64,000 in 5 years if I buy a $350,000 home. |
And that, friends, is why I'm still in an apartment until I get a more stable, better-paying job (when?
). I figure the factors above, plus taxes and maintenence issues (time AND money) would exceed the bounds of my marginal salary and how I'm interested in spending my time. I'd end up losing in the long run. Now, I DO wish that I could have purchased some land down in Mono County 5 years ago for $12k/lot, when the same lots are selling today for $80k, but we all can't be in the right place at the right time with the right funds....