your money

I would never think of buying a property because for starters, you never really own it. Many areas around here have way too many ordinances that specify what you can and cannot do with your property and some even tell you what color you have to have your house painted. Also, as a renter, I don't have to pay for heat, garbage, water, and maintenance. Once all these other expenses are added in it is way more expensive to own. Then there is the issue of mobility. If I have to move for some reason, as a renter I don't have to worry about trying to sell a house that I would still be making payments on in this tough market. The property taxes could also be high as an owner and if you fall behind on those, you can lose everything you have invested. I realize that these costs are fixed into a rental cost however one will never have a expensive surprise should a major appliance go out or the roof needs repair.

I hope that renters are setting some money aside. The big advantage of being a homeowner is that it is a forced savings program. Sure, prices are down now, but I expect when prices go up in five to ten years, I will be able to sell my home for a nice profit. Also, I like the privacy that comes with home ownership. Finally, it's not just an investment, it's my home.

Buying a townhouse or condo may not be cheaper than renting once association fees and home maintenance/repair costs are added to mortgage payment.

Developers never saw a bubble they didn't like. Now it's the apartment bubble.

@djcrazy - You have to fight the man. If you are not happy with ordinances, association rules you have to get after or join the city council or association group and get other taxpayers behind you. Don't just give up and allow these bureaucrats do as they feel!

I have to counteract DJCrazy's comments. Home ownership is a great way to build wealth, and with todays low interest rates, it even better. And as far as the comment "you never own it", not true. I have owned my home for the last 2 years. Very nice having no mortgage paymments. I am just a middle class guy so it can be done.

40% of Twin Cities mortgages are under water. Far more than that may still be, for now, above water, but still worth far less than the owners paid for them. Every house that sells at rock bottom prices due to foreclosures or walkaways lowers the bottom for everyone in a death spiral. I will never, ever own again. Prices aren't going to start climbing for many decades.

It's interesting this story didn't mention the 12,000+ (mostly luxury) apartments under construction or proposed in the Twin Cities. Seems like a enough of a flood to drive rents down soon.

pitythefools - First off, you should buy a house as a home, not necessarily an investment - that way it doesn't matter which way the market goes - you'll have close to the same payment for the life of the loan (even as rents go up) and afterward, a place to live virtually rent free. Secondly, prices are already going up because there's hardly any inventory available. Our house is conservatively worth at least 20% more than what we paid for it a year and a half ago and probably closer to 40%. As I said, though, it's a home - a place to live - not an investment vehicle.

djcrazy is correct. Even when the mortgage is paid off you do not own your property. Try not paying your property taxes and see what happens. My wife and I were in the process of purchasing her grandparents property, 40+ acres. Even though they owned it free and clear we could not build another dwelling on the property. We could tear thier home down and then build. Just proves the point, even if you pay the bank the gov't stil dictates what you can do with your property.