Quote:
Originally posted by Drago
How many people with $175K in the bank are renting? I think you can safely assume that most people who are renting are doing so because they can't afford a down payment....at least amongst the people I know. Of course YMMV.
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Your argument would be valid if buying a home required a down payment. I sold one property in January. The buyer had no down payment. I am hoping to close on a second in the next week or so. This buyer has no down payment, either. My parents are trying to rent a home for $1095. The security deposit is $1095, as well. For a person with a credit score above say 600, one can buy a similiar home with $2000 for closing costs and no down payment. In this case, renting requires more up-front cash than buying.
This market has been turned upside down in more ways than one. If you aren't in the trenches, you don't know how bad it has become.