
Homes vs Stocks - jasonlbaptiste
http://blogmaverick.com/2008/11/11/homes-vs-stocks/
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jleyank
Based on my depressingly long experience, I would say that if you can easily
switch jobs w/o moving, and you like the area, you should consider a house.
Better customization options, the chance to create equity, better credit
picture, etc. If, however, you CAN'T switch jobs w/o moving, you might be daft
to purchase - the damn things are somewhat to rather illiquid (particularly
right now) and there's all sorts of years maintenance you have to do as an
owner.

Like everything, it's a business/risk decision that you have to make based on
your career and aspirations. Me, I overspecialized too much doing stuff I like
to do. When the jobs are on the other side of the country, the choices aren't
all that nice with a house...

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joubert
The author seems to think it is intrinsically _bad_ to be a renter for life.
Why?

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JeffL
Owning a house is just so much more expensive than renting if the value isn't
going up at insane rates. You have to pay for insurance, taxes, repairs, etc.

It seems to me that the "extra" cost that people pay to own their own house is
simply the premium created by nice aspects of owning your own house. Whether
or not that premium is worth paying is a personal choice.

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anamax
If you're renting, who do you think is paying the insurance, taxes, repairs,
etc?

Yup - you, the renter. The only time that you're not is when the house is
appreciating fast enough to cover those things and the rental market is for
some reason depressed. However, if house prices are appreciating, lots of
folks are being priced out of buying, which makes them renters, pushing up
rental prices.

Businesses that don't pay all of their expenses plus some profit don't stay
around long. (If there's no profit, there's no point in spending the time or
tying up the capital. T-bills are a safer and less expensive way to do
nothing.)

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JeffL
Well, in the case of renting, I'm currently renting a house that was
originally bought when the housing prices were less than half of what they are
now, so I'm indirectly paying only half the property tax that I would be
paying if I were to buy the same house. Also, I personally know several people
who buy houses and rent them for less than the mortgage, let alone all the
other costs because they are hoping to make their money back on real estate
appreciation.

