Surely A Large Human
Date registered: Jun 2006
Vehicle: '08 C219
Location: Between Earth and Mars
Mentioned: 2 Post(s)
Quoted: 482 Post(s)
I was having an interesting conversation at lunch, where the notion of home ownership as a "good thing" was questioned. Never thought about it that way before; it's the American dream, it at least builds equity (unlike renting), it promotes stability, etc.
The counter-point, and I'm not sure if it's valid, is that few (if any) people will realize enough appreciation during the 7 years average an American spends in a home before moving, to recoup the 12% they lose during the process of moving in, then moving out. That figure is rough, but I think it stands scrutiny...loan processing fees, moving costs, etc., then the realtor's listing fees, moving costs again, etc. It all adds up, and if your house isn't appreciating wildly and/or your loan value isn't high enough to require an itemization of deductions in February, you're losing money relative to simply renting.
Kind of a head scratcher, ain't it.....