Reply to 44, I don’t own a house but kids are in private and college is paid for…

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[quote=Anonymous][quote=Anonymous]OP with higher interest rates, more people will choose to do what you are doing, especially if rental prices stabilize while purchase prices keep rising.

But most people on this board either bought or refinanced when rates were crazy low. In that environment, it's kind of dumb not to buy because you could borrow for so little. This made buying a better deal than renting in many areas. Not all, but many.

Most people put their down payments together before having kids. We also did not have help from family, but we were able to put together a big enough down payment to put 15% down on a condo when we got married. We then traded up from that after 5 years, so all the equity from the condo went towards our house, plus we got a low rate. I recognize we got lucky with timing -- had we tried to buy later, or trade up from our condo later, we might have been shut out due to rising rates. It really changes what you can afford a lot. Prices have not come down meaningfully to accommodate rates because sellers don't have to sell. If their rate is low, they can rent it out if people won't pay the premium, cover their mortgage, and wait for the market to improve. I don't see that changing as long as rents are stable and people still have these 2% mortgages. I know people who live in homes worth 800k or 900k who pay less than 4k a month in mortgage. It's very easy to rent a house like that out for 5k or more. So the math just doesn't support cutting the price down to find a buyer.

But all of this is flipped now due to rates and housing costs. If we were starting out now we likely wouldn't be buying like we did before, if we could rent for so much less and put the difference into investments, which is what it sounds like you are doing. But that would have been dumb in 2014, when we originally bought, or 2019, when we upgraded. We made the right choice for us given our options at the time.[/quote]

I’m basically in this situation (rent but college will be covered by my ex, I don’t have any debt). I actually think it will be good because I may want to move when they’ve launched anyway.[/quote]

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