Ones good at math and likely to move in a few years?
Buying a house has really high transaction costs. ~6% commission, plus more in fees and taxes. And then once you have the house, you've taken on all the maintenance and price risk. That can make sense if you're staying a long time and want the benefits of ownership. But plenty of people with high-flying jobs know that they may move soon enough that the math doesn't work out.
Personally, I could afford to buy a house, but I never have. I like the freedom, and I really like never having to worry about maintenance, taxes, renovations, and the like.
> Buying a house has really high transaction costs. ~6% commission, plus more in fees and taxes. And then once you have the house, you've taken on all the maintenance and price risk. That can make sense if you're staying a long time and want the benefits of ownership. But plenty of people with high-flying jobs know that they may move soon enough that the math doesn't work out.
Interestingly, most of the transaction costs hit you when you sell, not when you buy, which is one of the ways the US favors landlordism and sequentially acquiring more and more properties instead of just renting forever, or even just buying one primary residence and sticking with just one.
Exactly. I'm sure the hidden fees have some effect on people. But anybody who is thinking about buying now and possibly moving in a few years should be thinking about the round-trip costs.
Buying a house has really high transaction costs. ~6% commission, plus more in fees and taxes. And then once you have the house, you've taken on all the maintenance and price risk. That can make sense if you're staying a long time and want the benefits of ownership. But plenty of people with high-flying jobs know that they may move soon enough that the math doesn't work out.
Personally, I could afford to buy a house, but I never have. I like the freedom, and I really like never having to worry about maintenance, taxes, renovations, and the like.