[quote=eyePod]Rent vs Buy for housing is a fundamental measurement which oversimplifies the analysis. If rents, housing prices, job security, economic stability, etc were STATIC it would be a GREAT metric. However, if any of the inputs change significantly then the result changes significantly.[/quote]
Job security, economic stability, etc. affects you, regardless if you rent or buy. So, why does that matter? If you lose your job and you’re renting, you better find a job soon or you’ll be living in a box once your savings run out. Subleasing won’t be looked upon kindly by most landlord. If you lose your job and you own a house, you can theoretically rent out all the rooms, garage, etc. so you can basically live in your house for free until you’re finally back on your feet. This is one of the many reasons why it’s so important to me that I only buy houses that are at least cash flow neutral, even if it’s a primary resident.
