Smart move? CK could buy, but chooses to rent
CK and his wife are both in their mid-30s, pulling down decent professional incomes.
And both have chosen to rent rather than buy. The pair like the flexibility that renting brings - if a job opportunity pops up in another city, they are good to go.
Nor does CK foresee a change of heart anytime soon.
In fact, former Reagan budget chief David Stockman's warnings of an impending, Fed-fueled housing bubble - which I blogged about here - rings true to him. Buying a home with a 30-year mortgage is a vestige of that old and now bygone world where you worked for the same company all your life, CK argues.
Here's what CK had to say on the comment board the other day.
He's destined to either look brilliant ten years down the line after we have all lost our shirts following another housing bust, or wind up instead wishing he had bought before prices really got crazy.
I think Stockman is dead on. "With the combination of 7.9% unemployment and staggering student loan debt, he doesn't see a young generation of new home buyers coming into the market."
My wife and I are mid 30 professionals with comfortable incomes AND student loan debt. We are fortunate and better off than many in our generation. Many others are under or unemployed. We choose to rent since it allows us to save money, remove homeowner headaches and provide flexibility in case our jobs require us to relocate. As today's jobs are no longer 40 year careers as they were post WWII the same house is no longer where most will reside for 40 years.
Given this and the remainder of Stockman's argument I fail to see how overall housing can continue to appreicate. 2012 was an anomaly.
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