Buying a typical SFH (at current prices) makes you: - financially worse off than renting in most places (go look at any rent vs own analysis recently) - live in subprime location compared to renting (no houses downtown or next to office) - have to deal with home maintenance yourself, costing lots of time - take on huge financial risk - much less flexible if you want to move (huge closing costs) In exchange, you get some more square footage and a small yard. Is that really what it’s about? I don’t get it
I was considering buying a house as of last year, im a new grad. Given the current market and other factors Im no longer looking. The numbers just dont make sense atm
It depends on how much you value space. I very highly value having a yard for my dog and workshops space for my hobbies. I also very highly value being able to customize and invest in my living space. Renting is OK, but then you can’t improve your living space because they’ll raise the rent. You have less space for more money per sqft. Generally no yard too. All for a better “location”. Oh wow you can walk to the same set of overpriced restaurants every day. Yawn, give me a workshop and a yard and there is an infinite amount of cheap entertainment.
I rent a SFH with two bedrooms, a garage, and a yard for $2,850… If I had a mortgage on the same house, it’d be costing me $8,000+.
Sounds like Bay Area for sure. When the math looks like that, renting makes sense, so long as you don’t want to take too much care or do much customization on your living space.
Having a mortgage gives you a relatively safe leveraged investment where the first 500k is tax free all while hedging inflation. Most people do not consider their sfh subprime. Ive lived in dense urban housing for 15 years and it sucks.
I have 2k sq ft, my own pool, extra room for my office, lots of trees and wildlife in my neighborhood, 4 parks in my neighborhood, 5 min walk to a grocery and closest park, quiet, much safer, etc. The list can go on. Pretty worth it to me.
Wow, Alabama sure sounds nice
Nope. It’s a suburb in a major Canadian city.
Good deal if you pick a good area and keep it up for 5-10 years, anything else it’s a bad deal
If living in a SFH is the same as living in an apartment for you, renting will win. You should compare renting similar SFH vs buying it
I agree , many would say “we don’t need to live in sfh “, but most of them will move to sfh when they have a family
Feels like an achievement in life.. interest + property tax is expense yes.. but u get tax rebate in it .. ( really matters in ca).. mortgage payment is partly building equity..rent is all expense..
The key point is “at current prices”. It’s always a terrible idea to buy something right after prices went to the moon. Up 40%+ in 2 years? Good luck having that happen again. Anyone with half a brain realizes there’s more risk of going back down than going up more.
If you love living in the city and the heart of downtown, you probably aren’t going to be happy with a SFH. There are millions of people who think that kinda life is overrated and not fun, same as you think living out in the burbs and working on your house is overrated and not fun. Get a condo if that fits your lifestyle better
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You have to cut grass, clean the snow.
Drought resistant yard + California fixes this problem
You have to deal with loud neighbours in your apartment. You’ll hear moans of people having sex reminding you of your loneliness and virginity. Plus, you’re at the mercy of your landlord. Each has pros and cons, with owning with more pros.