In light of the current values of homes on the market, several articles have appeared recently discussing the merits of owning rather than renting, especially in certain competitive housing markets around the country. There is even a website where you can find maps of buy-rent ratios based on market research in all metro areas.
Aaron, in our last discussion you talked about the discrepancy in prices between a places like California and Texas. Do you think this buy-rent ratio only favors areas of the country like Texas, where home prices are much lower in general?
ReplyDeleteAlso, as a home owner, how do you feel about home ownership in general? Is it more of a personal "I'm ready to do it at this point in my life" decision versus an economic "the housing market is cheap right now" decision?
I think one key, which you touched on, is that the location makes a huge difference. The second, key, which the TIMES article only briefly mentions, but I believe should be expanded (or at least mentioned before the jump) is that your personal time frame in a home makes a huge difference. When we bought in San Diego, it was our intention to live there at least until we had a third kid, which may or may not ever happen. So, at the time of purchase, we were planning on living there 8-10 years, minimum. Then a better lifestyle was presented in the Bay Area and we now have a rental in San Diego, while we rent in the Bay Area. Now, in our current location, there is no way we will stay here after 2012, which is only three years away. So from our perspective, it makes sense to continue to rent and look to buy in 2012-2014.
ReplyDeleteUntil you had a THIRD kid? Have you even had one kid yet? Damn you are all about planning...
ReplyDeleteI think you make an awesome point. I totally agree that the #1 issue for me would be the personal stability question. If opportunity presented itself elsewhere I would want to go and not feel obligation to stay with the house. Owning where you live and work is psychologically powerful.
Does this mean you are not moving back to San Diego after 2012? Are you thinking of buying in the Bay Area?
Well it was a three bedroom house, a room for Jessica and myself and two kids. As soon as we started thinking about having a third kid, we would have to move. Currently, we are not planning on having a kid for another couple years.
ReplyDeleteWe are not planning on moving back to San Diego after 2012 (I have no idea where you got that date). We are not going to consider moving anywhere until 2013 and that is when we would start looking at buying a house, most likely in the Bay Area, but San Diego remains the only other possible metropolitan area we would live in.
Um, I got the 2012 date from your first comment? Did you not mean to write that? I'm so confused
ReplyDeleteYes, I meant to say that. To clarify, we will be renting our current place through 2012. 2013 is the first time we will consider looking at other places, whether that means renting a different place or buying.
ReplyDeleteWhy 2013? That seems so arbitrary...
ReplyDeleteWhat if you had a boy and a girl - would they have to share the same room? That's messed up.