hellbender
Recycles dryer sheets
- Joined
- Jul 14, 2006
- Messages
- 153
Scott Burns makes a case that buying even expensive real estate is a better bet than renting if you intend to stay put for awhile.
A Dare That May Pay Off
" Intuition says they should rent. San Diego rents are about half the cost of buying and financing a comparable house. But intuition is wrong. In fact, there is a sublime beauty to falling knives. It still pays to buy, not rent – with this caveat: Arlo and Amanda must be confident they can remain in the house for many years."
" So here's how rent vs. buy plays out if you use consumption smoothing. If San Diego home values rise with inflation or decline, Arlo and Amanda will enjoy a higher lifetime standard of living than if they rented. If the real estate market continues to soar, their lifetime standard of living could be reduced to that of a renter – but they would have the option of selling.
A Dare That May Pay Off
" Intuition says they should rent. San Diego rents are about half the cost of buying and financing a comparable house. But intuition is wrong. In fact, there is a sublime beauty to falling knives. It still pays to buy, not rent – with this caveat: Arlo and Amanda must be confident they can remain in the house for many years."
" So here's how rent vs. buy plays out if you use consumption smoothing. If San Diego home values rise with inflation or decline, Arlo and Amanda will enjoy a higher lifetime standard of living than if they rented. If the real estate market continues to soar, their lifetime standard of living could be reduced to that of a renter – but they would have the option of selling.