[Cubswin]

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it's nothing compared to the complete butt-f*cking you would have gotten paying rent.

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This logic is no longer true in a good number of markets at this moment. Renting actually makes better sense given the all time high housing cost to rent ratios. Historically, this ratio has tended to be in the neighbourhood of 100/1 but in many markets it is now over 300/1.

The building I live in (Northern VA) is going from apartments to condos. Monthy rent is $1425 while we have first right to buy the new condo at $495000. The cost to rent ratio on my unit is a 347/1!!! On top of that, there would be a $500 a month association fee. Ok, lets do some math.

Assuming I wanted to buy my condo, and i had $50k to plunk down, lets just say i borrowed $450k at 5.5 for 30 years. My monthly mortgage + HOA fees would be $3055. Of course, this does not take into account property taxes, income tax breaks and insurnace costs that come with home ownership. $1805 of my monthy payments would be thrown out the window, lost to HOA fees and interest payments. $1250 of my monthly payments actually goes toward equity in my house.

Now, if i continue to rent at $1425 but save and invest the difference of my would-be mortgage if i bought, I would be in a better situation ($3055-1425= $1625 invested as opposed to $1250).

To make a long story short, the old adage that renting is throwing money away no longer holds true in many markets. In many cases, renting is actually a sounder financial option. To the OP... the housing market is cooling off quickly at the moment. Save some money while renting and try to shoot toward saving 20% toward a down payment and avoid mortgage insurance. When things finally cool down, and the real estate flippers see their profits margins shrink, then get ready to pull the trigger.

cubs