Quote:
Originally Posted by potter
Well there's your problem, you're comparing prices from before the real estate market collapse to after. And using that same comparison to buying a house today. That would only make sense if the market were to collapse a second time, just as bad as the first - come on man....  |
Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?