>>I pay $1,600 to live in a house that “was” reasonably valued at $525k a few months ago. The amound I save every single month, compared to what I would pay if I bought the house, is staggering!<<
My experience is that people that rent, especially for more than 1 year, simply cannot afford to own the home they live in. Hopefully you’re putting that money you “save” into something besides paying the rent. Too bad you’ll have to pay capital gains on everything you make... unlike the up to $500k of tax free capital gains you get from selling your home. Not once or twice, but the rest of your life.
Try that with the stock market.
My understanding of the Seattle market you note is that over the last 10 years you’ve been renting, homes have appreciated in value by 100-150%, if you did nothing to the house except mow the lawn and keep it from falling in on itself. Much the same things you do as a renter. Hmm...
I couldn’t buy in the beginning due to divorce fallout. Then prices went nuts while rent didn’t. I prefer the freedom of renting now. My wife and I are both professionals in a five bedroom. I use one as my music studio which is a writoff and my wife uses one as her office for her business, also a writoff. But I am so hooked on renting now (the freedom) that It will be hard to buy when it is prudent - Which should be around 2011 or 2012. I do miss the tax writoff, but our businesses give us what we need