[quote=sdcellar][quote=CA renter]Although many of us would like to think we’re buying our “last” house, life has a tendency to be unpredictable, and any number of events — like changes in family formation (marriage, divorce kids, in-laws, etc.), job loss or transfer, etc.– might force someone to have to sell. Better to have bought near the low, so that you are always able to sell at any point in the future.[/quote]
Agree that it’s difficult (impossible?) for anyone to see 30 years out. I tend to think a good approach is to make sure things work for you 7-10 years out with somewhat challenging assumptions (e.g. value drops another 15-20%, can’t re-fi, must sell, etc.). If that can work, then it typically only gets better from there.[/quote]
First and foremost, planning to pay off the house and keep it forever doesn’t mean that it has to be your forever house. I agree with both of you that life can always throw you curve balls and you have to be prepare for them. That’s why rent vs buy is very important in my eyes. I have no plan of selling any of the house I buy. I plan to buy, live in it for 7-10 years while I save enough down payment for the next one. Then rent out the current one. Rinse and repeat until I’m ready to retire. The purchases I made and will be making have to be cheaper than rent and have to be handled by 1 income, just in case one of us get laid off. If you can rent it out for a profit, job loss, divorce, etc. wouldn’t affect you as much since you won’t need to sell. If the house you purchased can be handled by one income, even if you get divorce, one of you can pay out the other and the one w/ the house can still easily handle the payment.
