--- In FairfieldLife@yahoogroups.com, "jim_flanegin" <[EMAIL PROTECTED]>
wrote:
>
> --- In FairfieldLife@yahoogroups.com, akasha_108 <[EMAIL PROTECTED]> wrote:
> >
> <big snip> 
> 
> If one can rent the same property for 1500/mo, rather than buy it with
> > a mortgage of 3000/month, the renter is saving $1500 / month. The
> > buyer is pouring money down the drain unless home prices apprciate.
> > But there are strong indications that that train will not be back in
> > town for 5-15 years.
> >
> The one thing overlooked here is a measure of security after the 
> mortgage is substantially paid off- In a rapidly developing area, and 
> I know of people caught in this trap here, rentals may be converted to 
> condos, or demolished for housing, leaving the renters, as seniors no 
> where to go, except leave an area where they have established friends 
> and costs. I understand we are all renters, but there is definitely 
> more control over our assets if we buy, i.e. rent money from the bank.


Sure, home ownership has other non-monetry benefits. I like owning,
and planting a garden, and being able to tear down a inside wall if I
want.

But ownership has some burdens too. Several times I had job offers in
other areas, but moving/ selling my home etc was a big hurdle. Owning
ties you to an area. 

And i currently rent a house now. At about 25% of the cost to buy. The
yard sprung a big leak. I was glad to have the owner deal with it.

And sure, with the condo conversion craze -- soon to end I think as we
sink in a glut of oversupply -- can force renters to move. One has
less control as a renter. But we are in a renters market now. When
rents are so much below mortgages, it gives renters power, -- and
other options. Though, as you point out, it may mean moving out if teh
neighborhood.

So there are tradeoffs. My main point is that the price apprciation
bandwagon may be over for some time -- and that requires rethinking a
lot of "conventional wisdom" and observed longtime trends. 






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