[quote=DWCAP]First off, I really dont understand the ‘throwing my money away renting’ mentality. Everyone needs a place to live, and everyone pays for it. If you are that unhappy renting, I submit you may be renting the wrong place. Owning a home is generally more expensive than renting on a month (compared to) month basis, so without appreciation or a 30year payoff, One could argue that owning is throwing your money away.
(I am mostly trying to show you that over the past 3 years, you have NOT been ‘throwing your money away’.)
As for worst case, that depends on the place you buy. How far is it from major employment centers, how old is it, how many other units are up a creek without a paddle? (How long will Americans allow our government to saddle future generations with debt they have little hope of ever REALLY paying back?) Some areas of SD have reset, others (I believe) are re-bubbleing, and some are still falling. Townhouses in Carmel valley are a different world than townhouses in Spring Valley.[/quote]
DWCAP,
Let me clarify. I have not felt like I have been throwing money away the last 3 years. In fact I made a decision to rent precisely because I felt I would be throwing money away by buying. Unfortunately, with the way the market is now and has been this year, it looks like, at least superficially, that the market has bottomed. There are many people even on this forum who believe that. I was NOT one of them, but began questioning myself as I watched the market.
I am currently renting a sfr in OB for $1995. The house itself is ok at best, but I have a view of the ocean from every room in the house. It’s safe and comfortable for me, but it is so much more than I need. Interest on my savings almost paid the rent the first year so I didn’t think too much about it, but now I am getting practically nothing on my money. So, that is why I made the statement “throwing money away renting”. I actually think I should move to a less expensive rental so that I can save more money each month. With my substantial down payment, my PITI and HOA on the house I was considering would be ~1300/mo. I really hate moving, but feel like I could rent someplace a lot cheaper and save the difference. However, if I am going to buy in the next 6mo to a year, it doesn’t make much sense to move twice.
Everyone has given me much food for thought and I REALLY appreciate it.
