Buying a home is kinda like getting peer pressured to drink when you’re a teenager. You go with the flow and start to do stupid things.
I have more than enough fingers and toes to go around for people I know who made the dumb decision to buy a home, and the decision ultimately turned out poorly. For them, home ownership ended up in foreclosure, walking away, or selling their home at a steep loss.
Why do people do dumb things? Is it in our DNA? Monkey see, monkey do? Why must Americans own a home when they can’t afford it?
And people seem to have a penchant for punishment. I see some of these very same people buying up the latest condos, telling me it’s worth so and so millions now, just watch. The San Francisco real estate market is booming! It’s so hot right now. They’re counting their money, believing in riches, and I’m like, “Wait, you are the same person who just foreclosed on your home last year!” Gawd, some people are so stoopid.
I’m ready to sell my place and people keep asking me what I’m going to buy next. Why? Why would we buy a home (a home that’s not necessary for a 2-person household) when we pay $1,700 in rent and don’t have a single water, gas, electric, HOA, or property tax bill?
If I plug $1,700 rent into any of the rent vs buy calculators, not a single one will tell me to buy. It’s just not logical.