Quote:
Originally Posted by DaFace
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Side note:
I'm kind of ignoring the "equity" argument even though it's a valid one. I personally bought my place in 2009 when the government was giving out free money to buy a house, and I live in Denver where the housing market has been booming ever since. Nearly half of my net worth is due to my house, so I've been really fortunate. The problem is that another housing market collapse could eliminate all of it, and the situation in Denver this past decade is far from typical. Again, if you plan to stay in your place for years, the equity will absolutely be a benefit, but it doesn't work for everyone, and the benefit is pretty small if you're not in it for the long haul.
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I've mentioned something about this in the past, and while it seems silly I'm serious. The best financial advice that I would give a person just out of college would be to find a city that's growing and move there to start your career and buy a house as soon as possible. Buying a house in a growing market is like adding another wage earner in terms of increasing your net worth. You're paying a lot more for your home, which is rough, but you're leveraging the bankers' money in a way that gives you more wealth in the long run.