Bought the book...love it.
One question: My girlfriend and I are getting married and looking to buy a house....is this a crazy thing to do in such bad economic times?
We currently rent.
All the best,
Hi, glad you liked it.
Seems that house prices are still going down. Between renting and buying, it’s a pretty thin line but I’d say keep renting if buying would be too much of an effort in your current situation.
Now, if you are financially capable of doing it and not put yourself too much at a risk if you happen to lose your job or have other inconveniences, you have a location you already plan to live in, then go for it.
What we saw here happening a lot was people going back to live to their parents house, even those married with kids. Living together saves you rent, and you also help with other house expenses. I’ve received several emails of people already doing just this in USA. There’s other advantages as well, such as older folks or those unemployed watching over the kids so as to save on nanny or daycare money.
Again, this will depend a lot on your personal financial situation, but if in doubt, keep renting until you are certain. I don’t think the real estate bubble is about to inflate again any time soon.
In a worst case scenario, renting means the owner pays for anything that breaks, for house taxes, so it’s the better option if in a tight budget. If you can’t afford rent anymore, it’s much less of a pain compared to not being able to pay the house loan any more. One means you just get your stuff and leave, the other means you may be losing tens of thousands of dollars. Specially for newly weds, and specially during the first years, renting makes a lot of sense.
These are all things you’ll have to evaluate and come to a decision yourself.