On 6/11/13 5:29 PM, Walter Bright wrote:
On 6/11/2013 2:19 PM, Steven Schveighoffer wrote:
Define financially better off :)
You have mo' moolah. Is their any other definition?
And this is not even a fair conversation, because there are so many
variables to
consider.
I'd like to pop that default conception that buying is financially
better than renting. It's only true if real estate values appreciate
faster than inflation plus taxes plus real estate commissions, which is
hardly a sure thing.
(A lot of people overlook property taxes and capital gains taxes when
they make these calculations. I know one guy who cashed in his stock
options and bought a house with the proceeds, only to be forced to sell
it a year later because he couldn't pay the upkeep and taxes on his
salary.)
I can't even recall anyone remembering that selling a house costs you a
6% commission to the real estate agent. Poof! There goes a big chunk of
your profits right off the top.
Housing prices have to go up a lot to counter all that.
Whoa. I agree with all that, but this is well-known stuff, not obscure
information going against common beliefs. There are a bunch of sites
computing "buy vs rent" etc.
Andrei
