While I genuinely think AN is trying to give you good advice, don’t overlook his tendency to tweak the numbers to support his arguments (although I suppose we all do). The loan rates will generally be lower than anything you can find, the rents higher and, of course, it all ties to a nifty blue area on a map that tells him he made a good purchase.
However, the odds of losing equity in the near term are still pretty high. Now, I’m fine with that if said buyer is, as I agree there are other personal factors as to why you might decide to buy at any given time in your life, but I just tire of all the rationalization. If you’re okay with it, then be okay with it. Please don’t remind me how shrewd you’ve been. At least not right now. If it should turn out different down the road, then kudos, but the odds are not in one’s favor.
I suppose what put me over the edge is the discussion of 20% down like it’s nothing. I’ll agree that the opportunity cost is about 0% on annual basis right now (see, I’m trying to estimate conservatively), but you don’t need a depreciating asset eating away at that either and jpinpb, you were right to point that out. And I don’t care about whether you’re going to make it back in the long run because in my experience many circumstances can interfere with that and lost money is lost money, you’ll just have more to make up “in the long run”
