- Condo Fees: The condo fees for the neighborhoods in which I would want to live (Belltown or Capitol Hill) negate the tax benefit I’d receive from home ownership: $300-$400 monthly fees seem to be the norm. Property taxes are another sunk cost.
- Housing Bubble: Real estate prices in Seattle are incredibly high, most likely because of increased demand through low interest rates. People seem to be willing to purchase at high costs, assuming prices will continue to go up. This seems to follow the classic bubble pattern, and I wouldn’t want to get in on the tail end. Granted, the Seattle metro area is expected to grow by 1.2 million (the population of Portland) in the next 25 years, so perhaps the prices are justified.
- Flexibility: Owning a house makes it much more difficult to move to Brazil tomorrow.
Those are the primary reasons why I’ve chosen to continue renting and invest elsewhere. However, I have considered speculating long-term by purchasing land, although I haven’t done any research.