Quote:
Originally Posted by chassis
In 25 years of home ownership across 3 houses and 2 widely separated geographic regions, I estimate home ownership to be a breakeven proposition vs renting. I have bought the homes in the past as primary dwellings, in desirable school districts (higher property tax than surrounding areas) and have lived there for as long as life conditions warranted me to do so.
|
You are an anomaly.
There are countless studies which show that a person who purchases a home using sound fiscal policies (no other debt, 15Y or less mortgage, >20% down, PTI <25%, etc.) will be far ahead financially of anyone who continues to rent throughout their life.
Quote:
Originally Posted by chassis
Have a look at online cash accounts such as from FNBO. I just learned about these and will probably park some cash there.
|
These accounts are good, and I use them as well (Cap1), but are only a smart financial decision for short term cash that needs to be readily accessed. For any savings that will exceed 5 years in maturity, investing in good growth stock mutual funds will generate are far better return over the long run and should be utilized. For short term savings goal, like paying for a vacation, a car, etc - the online cash accounts are a good plan.
Over the long run, however, they are a terrible investment.
Quote:
Originally Posted by KenB925
My advice/vote would be buy a house, rent out a room.
|
This is a smart way to generate additional income, but should never be used as 'a way to afford the dwelling'. If he cannot afford the house without the tenant, then he shouldn't buy.