[bombcar]

Yes - the benefits for single family home ownership are so insanely high it's hard to come up with situations where it is not the way to go (usually involving not being in an area for long enough to overcome transactional costs).

In California on a purchase loan you literally can't lose - the bank can only take the house, it's non-recourse.

[marcusverus]

When in doubt, math it out:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal...

[tomrod]

Paywalled

[paulddraper]

> it's hard to come up with situations where it is not the way to go

One mistake is buying excessive amounts of house (and not renting it).

Ownership is no-brainer inasmuch as it also replaces your rent (or provides income).

---

EDIT: Another situation is short-term (< 12-18 month) rental.

[01HNNWZ0MV43FF]

I just don't think it makes sense from outside the system.

If the benefits are so great, why can't the benefits be shared and even increased if I live in a condo in a row of condos? Then we have fewer outside walls to insulate, we can all pitch in for a manager to handle exterior maintenance, we can pool parking, maybe get some solar panels using that nice big shared roof space...

I agree the benefits _as the system is set up now_ are obvious. I don't think those benefits _should_ exist because I don't think they make sense or fall out from first principles.

And this isn't a communist thing, I think that single-family homes just look like an inefficiency. As a capitalist, why am I paying to heat and cool extra walls?

[supportengineer]

What sets condos apart (in the same general location) is the monthly HOA fees. Monthly condo fees could range from $200/month to $4,000 a month or more. When buying a place with a HOA you really need to do your due diligence. As part of the process you will receive a copy of the HOA's financial statements. You need to dig into those and look at common areas like the streets and the pool and look to see how much expected lifetime remains, the current estimated future costs, and the level of the reserves (do they have money in the bank or not).

[com2kid]

> Monthly condo fees could range from $200/month to $4,000 a month or more.

Older high rise buildings have much higher fees, this is unfortunately true. (Soon as you have interior hallways and elevators...)

But as you alluded to, in general if you go through the finances of townhome complexes, the HOA dues are (often mandated by law) just creating a cash reserve to cover future expected maintenance.

Or to put it another way, realistically everyone who owns a home needs to set aside a few hundred a month to save up to buy a new roof, siding, paint fence, do pest removal, an so forth. The HOA in a townhome complex is a forcing function that requires people (again in some cities by law!) to calculate what the expected maintenance costs are going to be and to then save up accordingly for them using some low interest safe investment vehicle (or just cash, but IIRC my HOA has its money in some 2 or 3% interest bearing accounts).

> and the level of the reserves (do they have money in the bank or not).

This is the key part, a healthy HOA has reserves for the next n years of issues and has reasonable HOA dues to keep those reserves at a healthy level. Basically they know some large bill is, statistically likely, to come up, which will drop the reserves down, and the HOA dues are set at such a level as to refill the reserves before the next big bill comes around.

This is the math that all home owners should be doing.

[bombcar]

Most people should pay themselves HOA++ so that they have a maintenance account when needed.

The problem is if you don’t you just hurt yourself a bit - but a badly managed HOA can hurt you surprisingly when it’s discovered that they have no money at all for major maintenance items and trigger a sudden assessment.

[zdragnar]

This is the reason my elderly parents still live in an oversized home for their current needs. They've looked at downsizing to a townhome or condo, but comparing everything they would lose to sharing noise through walls, HOA fees despite still being responsible for mowing and shoveling snow, and everything else it just doesn't make sense for them.

[triceratops]

Most of these benefits apply to condos too.

[lotsoweiners]

> As a capitalist, why am I paying to heat and cool extra walls?

Paying to heat and cool “extra walls” is worth it to me for privacy and noise reasons. I also use the space for my gardening hobby, storage, and as an extension of my garage for diy woodworking projects. Money well spent in my opinion.