Yeah, as you can see the housing market tends to become illiquid rather than prices falling. Time in the market is better than timing the market but the alternative to buying a house is renting and investing the difference, not blowing the money at the blackjack table.This is theory and rationalization. I don't know what's going to happen with the market in the future but I got my house 8 month ago with 6.5% mortgage and currently in my area worse houses are going for the same price I got mine with 7%+ mortgages. On top of that I built equity and finished a few interesting projects.The tax advantages are not all they're cracked up to be since the TCJA. The higher standard deduction means the mortgage interest deduction isn't that appealing, and your landlord can deduct that anyway, and also gets to depreciate the property. Plus often your comparing against the tax advantages of a Roth account, which are slightly better than those of an owner occupied home.If you like project a house is really a no-brainer. I'm 8 months in and projects are unlimited.Also are you sure you are comparing apples to oranges? Because if you spend $22 000 renting a condo is a ghetto and comparing it to a $38 000 mortgage in a SFT with 8+/10 schools it's not apples to oranges.
You should also include mortgage interest deduction, tax credits, building equity etc. into consideration. There are a lot of incentives from the government which are focused strictly on homeowners. Overall the earlier you buy the earlier you will come out ahead.
Of course things might change but the only answer for this question should always be: time in market is better than timing market.
Not dealing with landlord is another huge benefit. Homeowners in nice areas keep building equity and making improvements which help net worth growth for the residents.
Also are you sure you are comparing apples to oranges? Because if you spend $22 000 renting a condo is a ghetto and comparing it to a $38 000 mortgage in a SFT with 8+/10 schools it's not apples to oranges.I deal with having a landlord by keeping some extra money around for movers. It's not too hard to find landlords that know what they're doing, the main thing is avoiding Greystar tbh. Dealing with a landlord beats the heck out of dealing with a condo HOA board as far as I'm concerned as well.
Statistics: Posted by barcharcraz — Wed Feb 14, 2024 1:36 pm — Replies 53 — Views 3283