I’m in the process of buying the apartment I live in. My landlord who I know personally was selling, and I decided to make him an offer, and he agreed. He was able to avoid the whole sales process, and I was able to buy a place I know I like living in at price that was fair. I imagine both of use feel like we are leaving money on the table, but that usually means the price is a fair one. Would I be better off had I waited until the market came off more? Probably. However had I not decided to buy the place, I would probably had to move. The act of moving feels like one of the inner rings of hell. I prefer to avoid it if I can, and in addition it’s not cheap. My last move set me back over $1500. If I decided to move I had no guarantee that I would find either an apartment (to purchase or rent) that would me better. The fact I was able to live in my place before I brought was a great advantage. I know exactly what I like about my place, and problems I have with it as well. This was not the case for the 1st condo I purchased.  I didn’t truly know what living in that place was like until well after the purchase and sale was signed.

Just because I’ve decided to buy doesn’t mean I think the housing rebound has begun.  I don’t.  I think we are still years away from seeing another rising housing market.  So why am I buying? Mostly because I love where I live, and want to keep living there.  This is an emotionally driven decision as many financial decisions in fact are.  At the same time, I’ve tried as best as I could to make a rational decision.  The cost difference in the 1st year of renting versus buying after accounting for both principal being paid, tax benefits, and foregone investment growth on the downpayment is minimal. This is transaction that I can both afford to make, and one that doesn’t substantively affect my cash flow.