You have to look at all the costs of home ownership, not just the mortgage payment.
While homes can appreciate in value, it is guaranteed that they will depreciate unless you keep up with the maintenance on them. Roofs, water heaters, furnaces, water fixtures, electrical wiring, carpeting, wall coverings, etc., all go bad from time to time and need repair or replacement.
For the first ten years of your 30 year mortgage, the vast majority of the payment is interest.
If you truly figure up all of the costs, it is entirely possible to come out way ahead by renting (assuming you invested the money you saved by not owning).
Yes, that's what I meant when I talked about the time and expense involved. I think some people who defend ownership don't think about all those weekends spent working on the house...
My parents owned, and all of my closest friends own, so I know the headaches.
(assuming you invested the money you saved by not owning).
I imagine that if I had the money to save and invest that, for all my protesting, I'd give in to the impulse to own.
Please see my post #66. This is my exact conclusion. If I have to pay more than $225,000 for a home, with my income and tax bracket, vs. renting an apartment for $800 per month, I may be better off renting and investing the difference.
If I can’t buy a home for less than $300,000 in Sacramento, then I am certainly better off renting for $800/mo, even though rent will increase by 5% per year over the same duration.
Too many people think renting is a waste of money, when it is only a waste of money if rent is too high or if home prices are nice and low.