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I felt like an old man when I typed that. Maybe that goes agaisnt modern wisdom, IDK. I just want a place for my kids to be able to call home even if they've failed as adults. It's something noone can take from you. An apartment rent can always go up, you could always be asked to vacate, etc.
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
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Too many variables for a one size fits all answer.
Are you committed to the area for at least 10 years (such as staying put in the same school district for your kid or some other reason)? Are you single?
What stage of life are you in?...for younger people with enough for a down payment owning can act like a forced savings down the road along with, hopefully, appreciation.
If you are planning on moving around quite a bit and/or job security is not a given, realtor selling fees and other expenses will eat into whatever profit you might make.
Where do you see the market in 10+ years when it comes time to sell...post Covid, what will the buying pool and buying power of those effected by this virus look like, let alone in specific cities?...interest rates are at historic lows right now; when they revert to their higher historical norms that will impact affordability and, hence, price (buying pool and seller profit).
Some might opt to rent for flexibility reasons and take the money they otherwise would have used for a down payment and invest it in the stock market, instead, with profits covering a portion of their rent (historically, stocks outperform real estate).
Will you be renting from an apartment complex or a private owner (home or condo)?...does your rental contract stipulate annual rate increases ?? With owning, your price is generally locked in (though it can increase if property taxes or, in case of condos, HOA fees rise).
What’s the inventory situation in your specific city?...any issues specific to a city you are looking at, such as rising sea level, hurricanes or other natural disasters?...exodus from high state income tax states? What are future development plans—a hip section today could change or be passe when it comes time to sell down the road.
Owning makes sense in many cases, renting in others. These are but a few things to consider.
Last edited by elchevere; 07-12-2020 at 04:48 PM..
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