Originally Posted by blitz121
I know renting might be the way to go but I hate the idea of throwing money in the air just to watch it burn, I amounted for the cost taxes and utilities as well.
Well once you sign a mortgage and are paying the interest, mortgage insurance, maintenance on the house, and property taxes you will likely still feel like you're throwing money in the air to burn.
Leaving the emotional aspects out of it, buying versus renting depends on where you live. In some cities it make more sense to rent (even long term) and in others ownership is the better route. It's not a simple rule of thumb thing - you need to do your homework if your serious about making a rational decision and not let emotion make the choice. Even the five year thing varies. Where I live currently the population growth is nil, housing prices move maybe 1-2% up in a good year but drop faster in a bad one and rent is relatively low. When I looked into last year, if I sold after roughly 12 years of ownership (based on average market conditions, ownership related costs, and moderately aggressive mortgage payments) I would break even. But that didn't include inflation, so I'd be looking at roughly 14-15 years before breaking even. On the other hand, by renting I am able to put more money into savings and investment which will return more than owning property (in this city). Your mileage may vary.