Donald pointed out this discussion over at the SeattleBubble blog about 10 reasons NOT to buy a home:
- Renters don’t have to fix leaky plumbing, pay for a new roof, or buy major appliances.
- The moment you sign the closing papers, you lose ~10% of your home’s value.
- Better job offer in another city? Hope you can afford to sell…
- Lousy neighbors move in next door? Too bad, you’re basically stuck!
- Your down payment and equity are anything but liquid.
Read the rest of the list at SeattleBubble.com. One interesting thing to consider is this list is based on a theoretical situation where home prices are at reasonable levels and supported by local economic fundamentals. In a hot housing market where prices only go up and people fight for the right to overbid on a teardown in a bad neighborhood it’s always a good idea to buy instead of rent. Always.