buying and only staying 4 years?

[bongofury]

I bought cash and planned to sell and move in four years, and then the housing bubble popped & the recession hit. The best advice ever is - rent! Put your house cash to work in safer short term investment instruments until there really is stability in housing and the economy. I sincerely believe we have more downside to come in housing, employment, and the economy.

[Howard Roark]

Yes. Even 52 week T-bills earning 0.32% have a higher potential return than real estate over the next few years of double digit unemployment and option ARM resets. I think Maricopa county RE will depreciate 10% to 30% more by the end of 2012, especially when the shadow inventory goes back onto the market. In other words, the probability of you getting your principle back is much higher with T-bills than with a cash purchase house in the next four years.

Originally Posted by KatrynS

I'd say there's even more downside for cash buyers! You don't pay interest, but you do lose the interest income you could have made (which offsets the cost of rent). Plus for cash buyers there's no SHORT SALE if prices drop -- it's REAL money you are losing, rather than asking the bank to eat it and walk away.

[bongofury]

I was the chosen one in my family (widower, no children to look after, reasonably OK financially). I needed to be close to a family member with health issues. The apartment/rental situation and selection out here was pretty ugly when I arrived. I like most, had no idea that we were on the precipice of a big recession, a country full of liar borrowers, and a government intent upon debt spending policies to keep the USA ship afloat. Four years was the time frame the family member could have been predicted to be living (they passed just more than two years ago). I live in regrets about events in my life, but I don't beat myself up to much for my decision to buy a house as I had no way to know what was to come.