Quote:
Originally Posted by redpoint5
The cost of renting vs owning usually depends most on duration. A person that will only be in the area for a year isn't going to come out ahead by paying the closing cost overhead of buying a house.
-snip-
If you want to find 'reasons' to [not buy in a certain area, even if it's cheaper], your creativity will never disappoint.
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Isn't that kind of the same thing? How can I be sure I want to live in Michigan for 5 or more years if I'm not sure I want to live there at all?
Obviously I could buy here, where I like it and wouldn't mind living here until the day I die. But the loan would be half my income, and that's only if the stars and planets align and I get drawn in a low-income-housing lottery pool and meet all the qualifications.
Quote:
Originally Posted by redpoint5
Your situation isn't as costly as someone that owns neither, but you're not putting money into the thing that appreciates in value, and there is no cost stability since the landowner can increase rent (or tell you to move).
An informed analysis of your financial situation can't be done without getting into the nitty gritty details. My speculation is that you'd be financially ahead purchasing a house/property if you could own it at least 7 years, but my uninformed speculation is not something to act on.
If you want to find 'reasons' to not secure financial stability, your creativity will never disappoint.
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Point well taken. But again, is the only point of life is to come out financially ahead? Yes, there's a chance lot rent could go through the roof here some day, or I get kicked out, un-moveable trailer and all. But owning a home isn't 100% fool proof either.
- A debilitating accident or disease that doesn't let someone work enough and pay their mortgage for a certain amount of time
- or certain natural disasters not covered by insurance
- or living in an area where the factory does close and there's no more work and now the property is worth nothing
are all possibilities even if you have a mortgage. And even if a person does attain financial security. Then what? Everything costs something. I've known a lot of people who have obtained financial security at the cost of their families, their marriages, and their happiness. I'm of the sort that feels that happiness security and marriage security are more important than financial security.
I wonder if buying a house in a cheaper area while renting here is a possibility. A $20,000 single bedroom house in Michigan is a pretty cheap backup plan. It could be hard to maintain from 1,500 miles away, but it would be cheaper to keep renting here and purchase there than to try to buy here.