Speaking in absolutes is always going to yield obviously contrary data. So your beef with dz is valid, but I think he makes a strong point. RE loans were largely driven by speculative loans (option ARMs and the like). Now, did everyone do it in some choice neighborhood, certainly not. But they are not so far insulated as they would like from the hoards of people inland who did.
[quote=sdrealtor]js
I cant disagree that for higher priced RE the rent vs buy looks better. However for many people (not all) renting is a substandard lifestyle. It typically means moving every couple years and sometimes more often than that. It means not having control over the place you live. For many people their home is the core of their existence. I hate moving, I hate answering to anyone other than my children and I love the sense of security our home provides us. There are alot of people like me. This means you can take your calculator and toss wherever you want because all things considered a home is and will remain a good store of value (throwing out the crazy the few year we went through which we all agree was an extreme outlier period) because there will always be someone who wants what we homeowners have around here.
So if you want to live your life under the auspices of calculators you should do so. I on the other hand enjoy the rewards of my hard work be it a nice bottle of wine, a ticket to see Roger Waters play The Wall live in concert that I missed 30 years ago or on my home that makes no sense to own when you compare buy vs rent. I can live with that.[/quote]
sdr, I completely and totally agree! Buying a home has some sort of ethereal awesomeness that I too long for (note: I used the word home not stick framed shelter). Thankfully, I am not in the place in life yet where it really has its teeth in me. I dream of buying a fixer in some sweet neighborhood and making it my own through the sweat of my brow. I grew up in this kind of neighborhood, and I can not fathom making a home in some irvine development. You can not put a price on this (or maybe everyone has a different price for that feeling’s value). I can not argue with you on this front. But my point was simply that from a PURELY numbers basis, in most SD neighborhoods (at least the ones I like) there is much financial risk and little financial reward possibilities, even if you get a smoking deal! Now in regards to the ethereal…I can’t play the numbers with that. I just know it sucks to lose you shirt and the rent vs buy in my preferred hoods point to losing your shirt.
Side note: I do wonder how many landlords would be more than pleased to sign a 10 year lease with a tenant…given some elaborate buy out and remodel provisions of course.
