Never Too Late to Rent Instead of Buy

posted on December 11th, 2009 filed under: Real Estate News

The cost of buying a home — whether in Coral Gables, Miami or elsewhere — should always be compared to the cost of renting.  A recent Wall Street Journal article suggests people might finally be catching on.

And don’t give me that “moral obligation to pay the mortgage” nonsense.  The rooad to ruin was paved by the government and the financial community, who together enabled banks to make a quick buck originating loans and then passing the hot potato.  We the People were quite happy with that arrangement as long as our “home equity” ballooned alongside the new purchasers’ enthusiastic bidding on late-stage Ponzi-scheme assets.  Now that those suckers realize they’ve been had, don’t expect them to be anything but cold and calculating.

Defaulting on a personal financial obligation has repurcussions.  But the consequences of overindebtedness are equally real.  Anecdotes here in Coral Gables and Miami suggest the stress of facing a lifetime on the hamster wheel for a depreciated asset can break up marriages and cause deadly stress.

J.P. Morgan said “Sell to the sleeping point.”  If somebody can’t handle their payments without risking divorce or death, I’d say cut loose.

Jingle mail, jingle mail, jingle all the way.

American Dream 2: Default, Then Rent

Mark Whitehouse

Wall Street Journal

Dec. 10, 2009 [10:15 a.m. 12/11/09]

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