Published by pcc on 10 Oct 2007 at 05:43 pm
Is owning a home better than renting?
It depends.
It’s true that you have tax savings and you’re also building equity.
But if you’re considering this question in a bubble area like Souther California, then the answer might not be that easy.
This is a great analysis of Dr Housing Bubble.
I even thought he was quite generous in his assumptions. I would consider a bear housing market for a few years with house prices falling maybe 5 to 15% and not appreciating 2% a year in his generous analysis.