r/Money • u/ImCoyyWR • May 03 '24

Is it worth buying a house in 2024, or renting?

25 years old, using my VA home loan. Just curious if it makes sense to buy a home, or wait for the market to subside and just rent?

I’m making 70k yearly, and pre approved up to 240k

Just wondering lol.

71 Upvotes
  • permalink
  • link
  • reddit
  • reddit

88% Upvoted

150 comments sorted by

View all comments

Show parent comments

0

u/eat_sleep_shitpost May 03 '24

Ok? And in the past 120 years stocks have outperformed real estate by 9% or more. What's your point?

8

u/Mandajoe May 03 '24

That’s not accurate

0

u/eat_sleep_shitpost May 03 '24

Residential real estate has appreciated by 0.8% annually from 1915-2015. It's not even close.

2

u/pablotweek May 03 '24

Even if you use CPI adjusted figures, not even close, especially over the last 30 years. You're suggesting home appreciation doesn't even outpace inflation. That would mean houses are getting cheaper. Is anyone under that impression?

It's closer to 4-5%. Plus a home is a leveraged asset. So your investment better make a multiple of that ROI.

There is a rent vs buy calculation which, given current interest rates and the larger federal standard deduction, might make renting preferable in some cases. But do it with the right numbers.