There is another aspect of this to consider, in my case I know I am vulnerable to an economic downturn. That’s why I decided to sit out the current housing market. My rationale was if I make a home purchase now (2005-present) and this turns out to be a hard landing / debacle, then I or my spouse could find ourselves in a mortgage (where we have to stretch ourselves to the max) facing a layoff and not able to sell our home without a substantial loss in equity. What really puts my mind at rest from a financial perspective is the rent verses own equation favors renters, in my case at least 1500/mo after tax premium. I think the over riding motive for many people is self preservation. Am I looking forward to the increased stress and anxiety of an economic downturn…..No! Do I want this to be over with….Yes. If I or my spouse lose our job in that event then we did the right thing and preserved our capital and have the flexibility to move. If we weather the storm then we will find ourselves with a small group of people that have great credit alot of cash and many properties to chose from. I’m hoping for the latter!!
