[quote=sdcellar]
And *before* you buy a house just because it fits rent/buy at this moment. What, violate the rent/buy credo? Well, I could get a super awesome crapshack somewhere that meets your (our?) rent/buy criteria, but if I hate it, can’t wait to move where I’d really like to live, it probably ain’t going to work out to well for me — happiness-wise or financially. Extreme example, but I don’t know what to do until you really can understand what I’m trying to communicate to you.[/quote]
This might be Martian to you but I’ll try again. I totally agree that you shouldn’t buy in an area you don’t want to buy, just for the sake for rent vs buy. I say buy in an area you want to buy when it’s at least rent vs buy neutral. However, you should always plan for the worse, even when it’s rent neutral. When you plan for the worse, nothing should surprise you and you’ll have your base covered. Sure, you might hope to be able to sell at a profit in 3-5 years and move up. But you should plan for staying in it for 10+ years before you can sell for a profit. What if in the next 10-20 years, housing stay flat, just like Japan in the 90s until now. What if housing drop another 50%? Don’t buy until you’re OK w/ the worse case scenario. When it’s cheaper for me to buy than rent, I’m OK w/ those scenario. Key word is, it’s OK for ME. I can’t speak for you or anyone else. That in a nutshell is the foundation for my viewpoints.
