Wow, I wasn’t aware the rental housing was actually a health concern, I thought it was just unaffordable. That makes the situation even more complex. Certainly the rent vs. buy debate is different for every location – but for NZ it seems renting can have huge potential downsides.

100% agree that it’s important to avoid taking on dogmatic views, particularly on topics such as this where most of the time there isn’t necessarily a “right answer”. Circumstances vary for everyone and at different times. Like you say, the psychological aspect is every bit as important as the financial.

HBFI, As always you bring up so many great points. I think your point about renting because you wanted the flexibility is a common reason many people lean towards renting as opposed to buying, especially if you’re unsure of how long you’ll be living in a single location. I definitely agree that the vast majority of people have very little knowledge about how the real estate market truly works, myself included.

I think it’s important to be open to both renting and buying – each has it’s own benefits and drawbacks. It seems so easy for us in the personal finance community to take a headstrong, unwavering stance on one side or the other and we forget that this housing decision impacts more than just our financial well-being.

I have been in my city for ~13 years and despite knowing I would try to stay here when I first arrived, I made the decision to rent. The math I ran estimated that owning would be better if I stayed at least ~10 years. That assumed inflation level increases on housing prices, which in light of the real estate price decline may have been rosy. Regardless of the bubble, in hindsight I’m very happy I rented. I ultimately wanted to retain more flexibility by renting in the event I lost my job. While that never occurred, I realize looking back that my preferences changed over time and I wouldn’t have been satisfied with where/what I would have bought. So I likely would have ended up moving which would have incurred more fees and expenses, thereby negating much of the benefits from ownership.

I’ve lived in numerous places since, which has allowed me to live in different, cool areas of my city. Many of the places I lived are condos that the owner used to inhabit. So they aren’t dumpy places by any stretch. Though I’ve learned you can’t know the kinks in a place by walking through it, you have to live there for a few months to discover the “hidden gems” that all places have to some degree. I also like being able to just call something when things break (happened to the HVAC – pricey stuff). And I’m glad I don’t have to replace floors, windows, or deal with unexpected costs. Cheers on a great post!

Those are all fantastic points. It sounds like in your unique situation buying a home is a much better choice for many reasons other than financial. Kids are certainly a huge factor to consider when buying a home as well. And you’re right – hiring a contractor is always an option to do work around the house as well, which can making home maintenance a little less stressful and time consuming 🙂

It sounds like you have found a sweet spot between combining personal and financial considerations into your home buying – you’re aware that you hate renting but you’re also aware that it’s foolish to overextend yourself in a mortgage. Kudos to you!

Brandon, exactly! The common argument is that renting is “throwing away your money” but the math behind it just doesn’t support this claim. There are plenty of situations where renting will leave you better off than buying a home. In particular, there are many tiny recurring costs that are associated with owning a home like maintenance, property tax, etc. that people typically fail to account for.