Rent vs Buy NYC
Out of context: Reply #14
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- johnnyw0
"I've reached the point where my rent costs equal that of a regular mortgage. Seems smart to have that money be invested instead of thrown away."
Most of your money gets "thrown away" either way. Unless the market does something spectacular, like triple in four years (oh wait... it just did) you build equity not at the amount that you pay off your mortgage, but some small percentage of that.
From an investment perspective, the question is "what investment will net me a higher return, real estate or something else"?
I would make the case that the NY market probably isn't going to appreciate enough in the short term that it won't even keep up with inflation, and that's even without a "correction" or the bubble bursting.
If you can afford the house you're going to grow old in, fine, but if you're comparing what you can do right now, without even having a down payment at the ready then there's more productive ways to invest.