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- Sep 11, 2022
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Where I live, which was a crazy hot market two years ago - no inventory, tons of people trying to buy - houses are down 15% and falling everywhere. Tons of inventory sitting around now. I know several people who bought two years ago who are down $20-30K from their original price, not to mention the $10-20K they've "invested" in the house already. One of them needs to move for their job, and now they'll be paying for an apartment + a few hundred dollars since the rent their house can get is a good bit lower than their 2% IR mortage. Assuming they can find a tenant since tons of new apartments are coming online and there is lots of vacancy.
I think about buying a house a lot, since it would be nice to have more space and be able to make it my own. But since I'm just starting on FL, it just doesn't make sense to me. Mortgages are 50% higher for a house the same size as a 2br apartment. Renting eliminates the risk of major maintenance/repair, which seems to come up every year or two with a house. I've known several people who had to take our more debt on their modest house because of things like that. I can also downgrade my apartment if I need to get leaner as I'm starting out, but downgrading a house is extremely expensive with all the fees and time.
RE makes sense for wealth preservation, passive income, or as a business if it's your main thing. But buying a house to live in "as early as possible" regardless of market conditions has started to look way less attractive in my area the last few months. Would love to hear any arguments against this though, because it will be a major decision on my mind in the next year or two.
I think about buying a house a lot, since it would be nice to have more space and be able to make it my own. But since I'm just starting on FL, it just doesn't make sense to me. Mortgages are 50% higher for a house the same size as a 2br apartment. Renting eliminates the risk of major maintenance/repair, which seems to come up every year or two with a house. I've known several people who had to take our more debt on their modest house because of things like that. I can also downgrade my apartment if I need to get leaner as I'm starting out, but downgrading a house is extremely expensive with all the fees and time.
RE makes sense for wealth preservation, passive income, or as a business if it's your main thing. But buying a house to live in "as early as possible" regardless of market conditions has started to look way less attractive in my area the last few months. Would love to hear any arguments against this though, because it will be a major decision on my mind in the next year or two.
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