buy vs rent

[Gingersnap92]

Originally Posted by FueledByBlueBell

I'm sorry, where is this "good supply of houses for sale" you are talking about???

There are over 4,000 houses for sale in Austin right now. This does not include the suburbs. The RR/Leander area has about 3,000 and there are about 1,200 out in Lakeway. there are about 600 for sale in the south subrubs, and so on.

If you're looking more expensive, liek above 500k, then there are about 1,200 currently for sale in Austin. There will be available houses today, tomorrow, and until the end of time.

The problem is that people don't think that affordable/sub300k quality houses are available. They are. Expand your search range to nice areas you were warned about, like 78748, 78747, and 78652.

[Trainwreck20]

Expand your search range to nice areas you were warned about, like 78748,

GASP! Did you just recommend people go buy a house in CC?

[OpenD]

Some valid reasons not to buy a house:

1. You don't expect to live in a specific place for at least five years. Real estate experts say that unless real estate is appreciating in value rapidly you are unlikely to recoup your investment within a shorter time period.

2. Lack of job stability - you're working for a company that is shaky, or might be moving out of area soon. Or perhaps you've made a career move, but you're not sure how it's all going to turn out.

3. State of the local market - You may be able to buy easily, but can you sell as easily if need be? If not, renting could be a better option.

4. Life change - you've just been through a divorce, or a spouse died, or you retired, and you can no longer stay where you were, but you haven't decided where to go next. Or your resources are tied up pending some legal action. Renting might not just be your best option, it could be your only option.

5. You don't have the bandwidth for it - homeownership requires time and money, and diligent attention in order to protect your investment. For many reasons... a highly demanding job, a chronically ill parent, a special needs child, a personal health issue... some people simply cannot commit to the rigors of home ownership.

6. You don't have the downpayment for it - For whatever reason... lack of earning power, high student loan burden, medical bills... you simply aren't in the position to buy now, no matter what your desires may be.

7. The numbers aren't there - sorry, but in some places, at some times, buying just doesn't pay. Rule of thumb is that if total monthly costs of ownership are 1/3 more than the monthly cost of renting, then renting is a better deal financially.

8. Your credit score is too low. - For whatever reason your credit score is poor. In general you're better off putting your current efforts into paying down your debts and improving your credit score than trying to squeeze into a marginal purchase scenario. If we learned anything from the mortgage loan catastrophe that wrecked our economy, this should be Point #1.

9. You need your capitol for something else - although home ownership is generally a good investment for people, you might just need that money for building a business, or some other worthwhile purpose.

10. Job flexibility - if being able to pick up and move quickly for work or career reasons is important to you, then home ownership can be a liability.

I could do more...

[CptnRn]

Originally Posted by millr

Looking at Austin's craigslist and real estate listings, it seems that there is a huge discrepancy between the rents and real estate prices. The rents are almost as high as in SoCal, close to the ocean, while the real estate prices look like they have a "90% off" sign. Is there a reason for this?

House prices have always been lower in Texas and Austin, especially when compared to someplace like SoCal. Also stricter lending regulations in TX prevented the housing bubble seen elsewhere.