I ran the numbers, buying a home makes zero sense in 2019.
So thanks to a long bull run in TC I have been seriously looking to move into a house in the range of $1.2mm - $2mm in NY/NJ region. After crunching numbers and looking at all the data it's obvious to me that I would be throwing money away. These are the top reasons I would rather rent a home or luxury apartment of a similar value instead of buying it:
Even in NJ were taxes are about half as in NY it still doesn't make sense to pay this on top of your 30 year mortgage with interest. Based on my numbers this is akin to paying a 30% monthly premium as compared to a renting a similar space.
This is a huge opportunity cost. This combined with the first point is like giving a landlord 2-3 years of rent up front to pay a 30% premium every month and owe a 30 year debt. Why the FUCK would I ever do that?!?!!!!?!
3. Maintenance& Repair
Now everything is on you. That roof leaks, you have to fix it. Sink hole... fix it. Pool got fucked... too bad. Maintenance for a home is an additional $1,000 a month in my scenario.
Seriously I only see two reasons to buy right now:
1. You absolutely need more space(sqft). Most available house are for sale and not rent because everyone is trying to get rid of this new toxic asset class. So if you really really need more square footage and are willing to give up 2-3 years of savings and pay 30% more than you were every month, then yeah buy.
2. You are moving away from a growing bustling city. You went to retire or just don't care anymore, so you're moving away from a high TC metro area. You would be crazy to rent from your local yokel. Buy in this case.
All other claims of home appreciation, and owning where you live or "paying yourself" are totally dumb made up and burn a hole in your bank account. There probably was a time in the US we're buying a home made sense... that's definitely not now.
Or am I wrong?