When you see, between 2009 and 2020, the price to buy being lower than the price to rent, I think that is due to artificially low interest rates. What that graph doesn’t show is that buying a house is an investment. Money spent on rent is gone forever. Money spent on your own home, less interest, builds principal. You won’t see it until you sell but it’s still there. Historically, homes have gone up in value. Even if you buy at one of the peaks, it still has gone up if you own the home long enough.
But then you have to consider the yearly property taxes, the cost of maintenance and just general upkeep, the cost of improvements people make to the home and land, the increased cost in utilities and furnishings and such, and then the realtor’s commission when you sell it. It “can” be a great investment but for a large percentage of folks it’s really just a major money suck.
We paid X for our home in 2005. We sold it for the same in 2020. But the almost 200k in property taxes spent over that time, the 40k in realto’s commission when we sold, the 100k in maintenance and improvements, etc? Gone like the wind.
Looking at houses in the price range of my current house, the per month of the mortgage is nearly 3 times as high with current rates. 1400 vs what would be ~3800 now. Absolute fucking insanity.
Looks to me like Zillow is soft pedaling the cost to rent... I have been looking at renting and rents are absolutely ridiculous, not $1850unless they are using a one room/studio ... But then Zillow was one of those companies buying up massive numbers of properties and likely wants to downplay the lack of reasonably priced homes for mid-lower income potential buyers they are causing.
I’m so glad we bought our house in August of 2014. We likely bought our house at something closer to the bottom of that trough due to its location and land size. We got it for exactly, to the penny, of what the county appraisal district appraised it for. The county appraisal is usually lower than the actual market value.
Though I bought my previous house in 2007, we still sold it in 2014 for more than I paid for it.
There has to be an end to this madness. It's unsustainable and dangerous!
When you see, between 2009 and 2020, the price to buy being lower than the price to rent, I think that is due to artificially low interest rates. What that graph doesn’t show is that buying a house is an investment. Money spent on rent is gone forever. Money spent on your own home, less interest, builds principal. You won’t see it until you sell but it’s still there. Historically, homes have gone up in value. Even if you buy at one of the peaks, it still has gone up if you own the home long enough.
But then you have to consider the yearly property taxes, the cost of maintenance and just general upkeep, the cost of improvements people make to the home and land, the increased cost in utilities and furnishings and such, and then the realtor’s commission when you sell it. It “can” be a great investment but for a large percentage of folks it’s really just a major money suck.
We paid X for our home in 2005. We sold it for the same in 2020. But the almost 200k in property taxes spent over that time, the 40k in realto’s commission when we sold, the 100k in maintenance and improvements, etc? Gone like the wind.
True. In Kansas City, some people's taxes doubled this year!!!!!
Looking at houses in the price range of my current house, the per month of the mortgage is nearly 3 times as high with current rates. 1400 vs what would be ~3800 now. Absolute fucking insanity.
I'd like to see the inflation adjusted version of this graph, or perhaps as a percentage of average income.
Looks to me like Zillow is soft pedaling the cost to rent... I have been looking at renting and rents are absolutely ridiculous, not $1850unless they are using a one room/studio ... But then Zillow was one of those companies buying up massive numbers of properties and likely wants to downplay the lack of reasonably priced homes for mid-lower income potential buyers they are causing.
I’m so glad we bought our house in August of 2014. We likely bought our house at something closer to the bottom of that trough due to its location and land size. We got it for exactly, to the penny, of what the county appraisal district appraised it for. The county appraisal is usually lower than the actual market value.
Though I bought my previous house in 2007, we still sold it in 2014 for more than I paid for it.