It's the opposite here in Charlotte. Even though rent is high, it is still about $700 less than mortgage/HOA/taxes. I was thinking about buying a condo uptown and rent it out until my kids get out, but when I did the analysis I decided it is better to wait before I decide.aTm wrote:It is worthless to discuss how good of an investment a home is without much more analysis than simply price when you bought it and price when you sold it.
The rental market alone is a huge factor. I could lose money on my condo when I sell it, but based on the current rental market in my area I am coming out way ahead. The rent on a comparable apartment (or to be even more exact the rent that I could charge by renting out my unit based on what others go for) is roughly $500/month higher than what I'm paying in Mortgage/HOA/Taxes. Every month I live there is an invisible $500 gain that is simply what it would have cost me to rent my place if I didn't own it. And that value may or may not show up in the value when I sell, depending on economics when that occurs.
More obvious things are how much does it cost you to borrow the money, how much did you lose in the transaction costs, etc which many ignore.
Either way, there is an intangible about home ownership that nobody can make you move before you want. So, I will probably buy anyway.