I own a condo, but right now I’m renting. I lived in my condo for nearly 4 years.  It served me well,. The smartest financial decision I made during that period was to live in that condo with a roommate.  It was 2 bedroom condo, and given the price of real estate where I live I would have hardly been able to afford the place if I hadn’t shared the costs with a roommate.  I’ve always liked living with people, so having a roommate was ideal for me.  The rental income paid for about 1/3 of total costs including mortgage, condo fee, and utilities - plus I got to live with friend.  However last year, I decided it was time for a change, and my roommate was moving out to another coast.  I wanted to live somewhere slightly different, and bit closer to work (not that I was that far from work - I’m spoiled by public transportation), so I rented the condo out, and rented another place.  I still have a roommate, except now we sleep in the same bed (well most of the time). Still, I think I may want to buy another place.

So, To buy or not to buy, that is the question.

Our society places a great deal importance on home ownership.  While personally I think home ownership is overrated, I’m still brainwashed. Psychologically there is something about owning rather than renting.  I would say it’s the permeneance of it, but in truth most people (my age) end up selling and buying a new place in a few years as it is.  But, it certainly seems more permenant.

The other consideration is of course financial.  Assuming that one will actually be staying at a newly purchased home, it’s a no-brainer to buy as long as housing prices go up or even stay the same.  But who know if you’re going to stay? In the end that’s the most important question to answer.  What’s happening in your life? Is going back to school in the future?  Another job? Marriage? Children? These questions need to be answered first, but even if you have the answers, there still a question of when.  For that reason renting is often a better option. Buying a place is a commitment, renting is not.  When you rent you can always pick and move.  Breaking a lease is not big deal.  Selling a house or a condo is.

Given the current housing market environment, I feel a great deal apprhension abouting buying.  I’d like to buy at the bottom of the market, but if I knew where that I was, I wouldn’t be writing this post.  My gut feeling is that the bottom is probably about a year a way, and even then I don’t expect to market to recover for another 5 years.  After we hit bottom, housing prices I imagine will struggle to even keep up with inflation. So I’ll keep looking until I find the perfect place.