|Rent vs. Own - saturday 2005-08-06 2240||last modified 2005-08-06 2240|
|Categories: Daily Grind|
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All the reading I've done on real estate investment has included the supposed truism that renting is a waste of money while owning property is one of the best investments one could make.
I don't think those experts took the real estate market of the greater Boston area in 2005 into consideration when they made that pronouncement. Two bedroom condo on Mass. Ave. in Cambridge: more than $600k. That's disastrously overpriced, in case you had any question.
As much as I presently pay for rent, there's almost no chance I could be making a wise investment and stay close to my two major activities at these kinds of prices. An investment means I make a profit at the end of the day. Can I actually expect that a condo that badly overvalued is going to eventually be sellable at an inflation-adjusted price that will make it profitable?
Undoubtedly I lose capital in renting. Yet frighteningly enough, some say that renting is cheaper than owning in the Boston area.
But I'm no expert, and I lack the training and data to make a good determination on the opinions of both those with vested interests in the supposed bubble expanding without end and those who, for whatever reason, disagree, such as: Boston Bubble, patrick.net Housing Crash blog, The Housing Bubble 2.
Should I be saving up for the real estate crash or diving in as soon as possible?