One thing I don't see you accounting for is the increased transaction costs of ownership -- I live in the kind of place you're encouraging people to buy apartments, on a rent-controlled month-to-month lease. If change jobs or have a kid and want to relocate, I can do so with ~45 days notice, a moving truck, and no risk.
But if I own I either need to sell or rent out my unit, both of which are expensive up-front and dependent on future market conditions, at a time where I am likely at a cash-flow low point in my personal finances. Even if it's good in the long-run, conditions may not be good at the moment I need to move.
It's possible that the upside of ownership is strong enough to be worth it anyway, but the risk and reward would have to be quantified a little better for me to want to take the jump.
tl;dr: Just because buying housing is a good investment for Wall Street doesn't mean I should buy myself a place to live in.
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Would love feedback from the HN community on this post!
It looks like realtor spam with funky math. I'm not sure why it is on here.
One thing I don't see you accounting for is the increased transaction costs of ownership -- I live in the kind of place you're encouraging people to buy apartments, on a rent-controlled month-to-month lease. If change jobs or have a kid and want to relocate, I can do so with ~45 days notice, a moving truck, and no risk.
But if I own I either need to sell or rent out my unit, both of which are expensive up-front and dependent on future market conditions, at a time where I am likely at a cash-flow low point in my personal finances. Even if it's good in the long-run, conditions may not be good at the moment I need to move.
It's possible that the upside of ownership is strong enough to be worth it anyway, but the risk and reward would have to be quantified a little better for me to want to take the jump.
tl;dr: Just because buying housing is a good investment for Wall Street doesn't mean I should buy myself a place to live in.