Reply to is it worth it to buy a house?

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[quote=Anonymous][quote=Anonymous]OP here. We wouldn't buy a condo. Jusy want a SFH in a specific neighborhood. Sometimes I wonder, why do people even buy houses? It seems so much more expensive/a hassle when you add in all the hidden costs. [/quote]

It depends on the market at any given time and what you are looking for, but I don't think it's typical for a mortgage to be 2.5x as much as rent for a similar property.  And of course some people really take pleasure in customizing a house and making it into a "home" over time, which is harder with a rental.  But most importantly, when you pay a mortgage you are building up value in an asset that you can later sell.  When you rent, you never get any of that back ever.

What you need to do is figure out exactly what you would be doing with that extra money each month if you don't buy a house, and how much return you would expect to get on that investment.  Compare it to how long you intend to live in the house and the possible resale value when you sell, minus ownership and transaction costs.  If you plan to stay a long time and you buy in a stable or up-and-coming neighborhood, you may find that buying is a good investment.  If you're just looking for someplace to live for a couple of years and you don't want to deal with maintenance hassles, keep renting and invest your money elsewhere.  [/quote]

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