Maybe I am way out on a limb here, but does anyone else notice that under the buying scenario the family who just bought is dedicating 50% of their income to morgage payement? The renters are using ~38% of income to rent. The only reason the total cash flow is similar to one another is due to the decreased taxes a homeowner has to pay compared to a renter.
Perhaps I need to change my expectations of risk and aversion to it, but isnt 50% of income going to houseing rather excessive? [/quote]
If they are roughly equivalent, how can one be 50% of income and the other 38% ?
The problem is you compared the pre-tax numbers when computing the percentages.
