[Domenic_S]

> what they never really emphasize is that once you take out a mortgage you've got that $1,000 monthly payment (for example) that you've got to meet EVERY month, for the next 30 years or until you sell. And you have insurance, property taxes, maintenance, etc.

You've got a similar obligation if you rent. Rent or buy, you're still out on the street if you stop paying.

> Carrying long-term debt and especially owning a home really does impact your thinking. You become more risk-averse.

Meh, student loans, the ultimate long-term financial obligation, didn't make me risk-averse at all. I'm slightly more risk-averse today -- and I do own a home -- but I attribute a great deal of that to getting older. The prospect of starting over from 0 becomes less appealing the older you get.

> As far as buying property as an investment, i.e. renting it out, the "common wisdom" is that you make your money when you [sell]. You absolutely need to get a really good deal when you buy [...]

Yes. If you're considering buying a place that you'll possibly rent out in the future, you need to be serious about it and do your research. When I was scouring the internet for articles and forums about it, I was shocked to see just how serious -- and * unbelievably fiscally conservative* the people are who buy rentals seriously are.

[potatolicious]

> "Rent or buy, you're still out on the street if you stop paying."

Not true at all. Buying means you've committed to a particular lifestyle, city, and income level for a very, very long time. Renting carries none of these commitments and risks.

If I lost my job today I wouldn't be anywhere near screwed - my lifestyle can be downsized a lot in very short order (on the order of 1-2 months to reduce my burn rate by 5x).

This freedom is important to me. Right now I'm in the middle of a relocation - I want to experience a new place, with a different pace and different culture. I wouldn't be able to do this if I had bought property. If I wanted to bootstrap a startup I can easily move into a much, much cheaper place and immediately free up a lot of capital.

[Domenic_S]

> Not true at all.

Well yes, it's true that if you stop paying your rent or mortgage you will be evicted. Although you're safer in a house you bought because the bank has to foreclose first.

> Buying means you've committed to a particular lifestyle, city, and income level for a very, very long time.

Depends on your definition of "a very, very long time". 5 years is the accepted minimum threshold for buying a place, and if you did your homework properly you should be able to break even renting it out. There was a time when 5 years seemed like an eternity to me, but not these days :)

> This freedom is important to me.

This is the important bit. There are 1,000s of rent vs. buy arguments all over the internet but IMO it comes down to what you want for yourself. That freedom to move about at will is important to you, so it sounds like you've made the right choice for you. I like where I live and I despise moving, so buying was right for me.

[mattm]

> You've got a similar obligation if you rent. Rent or buy, you're still out on the street if you stop paying

Not really because usually you just need to give one months notice to move out. So if you are facing hard times, it would be easy to move to a cheaper place or completely move to another place where there is more work to be found.

A person that "owns" his own house would only move as a completely last resort because the costs associated with it are much, much higher.

[Domenic_S]

> Not really because usually you just need to give one months notice to move out.

Depends on the terms of your lease. [1-3]-year leases are common out here, in which case you'd have a problem on your hands if you gave a month's notice.

> A person that "owns" his own house would only move as a completely last resort because the costs associated with it are much, much higher.

That also depends on the situation. If there's equity, they may make money by selling. It's impossible to compare these situations except to say that if you don't pay your landlord or bank, you're out.