patrick.net

If you can rent for less than the total cost of owning over the typical ownership period (7 years) then you should rent.

Prices in a lot of areas are way beyond what rents can support. I think another real estate big crash is coming soon.

You can do a pretty good calculation of fair price with this calculator:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

I think it depends on your circumstances and the location, and it's a place for you to live in for several years..

I wouldn't want to be a landlord unless it was a $50,000 house in Mexico that I rented to some digital nomads for $500+ per month cash.

I'm still a fan of stock mutual funds and it's been great for me.

Bob Brinker radio show said it was all about critical mass as in saving enough so you can live off the savings comfortably like withdraw 4% annually while it is still grow at least 1% over annual inflation.

I started to listen to him around early 1999.

Just need to figure out how much to save based on earning an annual inflation-adjusted return of 8%.

Can also earn a $300 to $400 dollars per month working at home a couple of hours a day on online surveys and gigs like thru Rat Race Rebellion website.

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would you sell now? or buy now?

I am looking to sell my primary residence now.

Ad, save/invest $20 per day and in 30 years or so you should have a million bucks.
The key is 1. invest for capital appreciation 2. avoid taxes. So, buy a Roth IRA.
I would tell a friend to invest more, although you can bring a horse to water, but you can't make him drink.
I'm living off dividends from mutual funds which I bought and interest from bond funds which I inherited.
Even stock funds which are not "income" funds still distribute capital gains and dividends every year. You can just take dividends and reinvest capital gains.

Patrick says

If you can rent for less than the total cost of owning over the typical ownership period (7 years) then you should rent
calculator:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

What about consideration for equity upside? Isn’t that one of the primary wealth building vehicles for the middle class?

Years ago I rented a home in San Carlos for approximately 5yrs. During that 5yr period, the following equity gain was observed:

Landlord: +$500k
Me: $0

The home I own now in the tri valley has gained >$500k in equity. That wouldn’t have been mine if I was renting,

Yes, you can argue that equity downside needs to be considered as well but it’s dwarfed historically compared to the upside.

My point is that if I didn’t consider Bay Area equity upside when making my buy vs rent decisions (along with RE being an inflation shield), I would be much worse off.

Equity is enforced savings. You would have to factor in invested differentials between rent and owning, not just nominal paper equity gains, and equalize the equity gains against maintenance costs, insurance, taxes, etc. Turning over home real estate with financing costs and commissions and moving expenses is usually an off the top loss of about ten percent, that has to be made up in future appreciation, which again is only theoretical if unrealized.

Maybe all those Orange County types who live like kings with cars, clothes, vacations, plastic surgery etc. on second and third mortgages then go bankrupt have the right idea.

Patrick's calculators are common sense over emotion. However, emotion has a market value, too, and the delusion of owning has a psychologic value that will vary from individual to individual.

Fort Wayne,

Real estate is local. Without knowing the market and the parameters, how can anyone offer any inputs?

For me, I’m always a buyer and seller regardless of where we are in the cycle of the housing market. I’ve shared examples on here. The latest one is 846 Adams St in Albany. The listing agent said it would be ours if we offered $680k for it so I passed. I would be a buyer at $620k. It was in contract, and then fell out of contract. It comes down to who can perform, not the highest price. Agents don’t get paid unless the deal is closed.