Nothing prevents you from renting now, save the difference between buying and renting and invest it. You can earn nearly 6% per year risk free on a CD. Can you say the same for a house that you buy today?
Then you can buy 5 years from now, when the cost of owning is closer to that of renting.
Assume that real estate prices stay stagnant for the next 5 years. Do you 10-year analysis and see if buying now or buying in 5 years will be most beneficial.
Dacounselor, I bought in 1989 and now I’m sitting pretty. But I still think that it was a great mistake because 1989 prices were inflated. I could have rented (a similar house and enjoyed the same lifestyle) and saved the difference between 1989 and 1996. Had I done that and bought in 1996, I would have more money today. But at that time, there was no Internet for me to get information. I was young and stupid.
Yes, for good financial planning, it makes sense to buy. It’s good to have your house paid-off by the time you retire. The key is not to buy at the wrong time at stupid inflated prices.
