Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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@dryfly wrote:

@gopheritall wrote:

I would also argue that earning equity in a home beats paying rent, even if you also pay PMI. Even the small amount earned during the initial payments. You get nothing back out of rent.

It depends. The house I live in has only gone up in price 3X over thirty years. This is a sluggish housing market. The stock market over that period has gone up WAY more than that over the same period. So a person on my block would have been wiser to have not accumulated equity – rented for less and taken the money and instead have invested it in the market.

The opposite was true if you lived in coastal California where house appreciation actually beat the stock market.

There are few ‘easy answers’ to any of this – just a lot of ‘maybes’ and ‘it depends’.

I lived in an area that after the mortgage crisis homes valued at 700,000 were selling for 450,000. :shock: It’s better today after 7 long years, but it’s not back. If you bought your house in that area for 700K in ’05 I doubt you would get over 600K for it today. That’s a long time to wait if you need the money. Bottom line is that real estate is an investment like anything else. It can go up and down. If you can’t afford to wait (say you have to move for a job), you might be SOL.