Homes: Why own, when you can rent?

Rents are cheap. Homes are empty. 5% or more homes are empty. Rents are dropping. Home prices are dropping. Property taxes are about the same as rent per year in alot of markets, especially in the Northeast. To own and expose yourself to leverage in homes right now is crazy imo. With a new wave of foreclosures coming, I think still if you can sell, do so.

Rents are cheap. Homes are empty. 5% or more homes are empty. Rents are dropping. Home prices are dropping. Property taxes are about the same as rent per year in alot of markets, especially in the Northeast. To own and expose yourself to leverage in homes right now is crazy imo. With a new wave of foreclosures coming, I think still if you can sell, do so.

rents aren't dropping here....yet. in fact they've risen quite dramatically in the past couple of years. still, i hear what you are saying and in silicon valley this is the one of the few times you'll see where you can save fast enough to buy a home, which is really good news for home buyers.

i tell people this and i get that glazed bovine look because after the recent "pullback" in home prices they think prices will bottom and take off again.

i'd be surpised if we are 50% thought the price correction and when we hit bottom i think we stay in the trough for years. i.e., there'll be plenty of time to buy but it will be much later .

ed rader