"Yeah, but I'm in it for the long haul..."

That's an argument that I clung to when I was seriously house hunting at the peak of the market. Whenever anybody said to me: "Now is not the time to buy" I would respond with: "I'm not in for a quick buck." I did! Check out this old L.A. Land post I wrote.

Which brings us to a comment that was posted by UserAndy today. He writes:

I think the 3x rule should be reiterated to buyers and lenders alike: No one should buy a home that costs more than 3x their yearly gross pay. Alternately, no one should be paying more than half thier monthly take-home pay on their housing costs. I like this rule better because it's just as good for renters as it is for potential home buyers.

However, you [Kate] don't address people that are buying to STAY. There is a really big monthly savings for home-buyers that have payed off their mortgages altogether. Not only does their month-to-month living expense drop significantly, but they now have a nice big asset that long-term renters do not. Prices, in the long run, will go up for both renters and homeowners.

For that fact alone, it SHOULD be (Andy's rules of Fairness) less expensive to rent than buy!

Andy is right that owning your house outright is a big savings. But most people stay in their home for about 5 years and never own their homes outright. (Go ahead, Google it if you feel the need). And so, for those people, it makes no sense at all to buy right now -- in this market. Essentially, those five-year "home owners" are really just in an outrageously expensive rental situation.

And, even if you really truly think you will be in your house for a very long time, you still should try and follow the tried and true affordability guidelines. Because even though you don't PLAN on selling, you could get divorced, or sick, or laid off, or have to up and move to New York City. And then you will be plenty glad that you bought in a buyer's market and didn't get in over your head because you will have options.

And don't give me that "but I have to buy a house RIGHT NOW" argument. You do not. I don't care if your wife is pregnant with twins. You have to find a place to live -- you don't have to buy it. There's no shame in renting. There is shame in wasting a lot of money. Especially if your wife is pregnant with twins.