[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]
Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.
It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂
