Quote:
Originally Posted by Ron Bennett
Owning (basically an open-ended lease from the government; one doesn't truly own property; note the word "Fee Simple" on a deed; feudalism never really went away, it's still with us - but rambling on) provides more stability.
And in many areas, rents are getting relatively expensive - a mortgage, even including property taxes, may be the same or even cheaper.
As for taking a hit on the value from the closing costs, fees, and future fees when it comes time to resell ... that may be 10% or somewhat more, but even accounting for that, ownership can still worthwhile.
A more basic question to discuss with her in-depth is how long she plans to live there ... if she's not sure / thinks likely under 5 years, then renting is probably better.
Related to the above, if there a high probability of either of them (assuming both work) having to relocate with little notice, owning could be a chain around their necks limiting their options.
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My thoughts exactly. If she has a stable job and she believes she has bulletproof job security and wants to raise a family in that house (good school district or near private schools) buying makes sense. HOWEVER, if she could change jobs, be transferred, would not raise kids in that house or send them to school there, she should rent. Unless you pay cash for the house, you are just renting it from the bank and it severely ties you down unless you want to become a landlord. I sold my condo in 08 for a decent gain (bought in 03) and I would never buy a place again until I decide that is where I will be for 10+ years.
