“I think we have to look at exactly where we want to live, how we want to live and then determine if the price someone is asking is worth what we are willing to pay.”
I am not saying everyone should own a home. It’s a choice we all make based on personal preferences and financial considerations. For you, at this point in time, the savings are more important than the ownership, for me it’s just the opposite.
I admit I am completely emotionally attached to my home and everything in it. I love where I live and I have never treated my home as an “asset.” I never list it on a net worth statement because it is not something I would ever risk losing. It is where I live and it is “my dream.”
I grew up in rented homes and there was always the fear that we could have the rent raised or be booted out at will. So that motivated me to be in control of my destiny. For some, that fear is minimal and renting is fine.
Lastly, I would mind losing $ 1 Million in equity but the probability of that happening in my experience is very, very small. And equity is not lost or gained until you sell and convert it to cash.
I would also mind losing my “home” back to a landlord who decided he wanted to move back in or raise the rent to a level I couldn’t afford, forcing me to move.
I guess I have to ask the question, if finances were not an issue, would you buy or continue to rent?
