Rent is much cheaper than mortgage. I don’t know about your country, but where I live mortgage is cheaper than rent. People actually buy flats, rent them out, pay mortgage out of rent income and even make small cash on top of it.
Comparing house to farmland is not fair. I can start comparing house to having kitchen utensils. Most of the people I know still cook their own food instead of ordering deliveries. And most of the people I know buy cars instead of renting them.
When you rent, you don’t have a control over your house. You would like to get new kitchen? Well, your landlord has different idea. So what, you gonna move out? Every stupid thing you want changed, you don’t really can.
Lastly, it’s a hedge. If you buy house to get wealthy, that might not be best idea. But if you buy it, because you want to live long term somewhere, then mortgage is a way to get “guaranteed rent”. No need to worry that because of some stupid market bubble, suddenly your rent will skyrocket.
Point 4 said a slightly different way: when you rent you are arguably shorting housing since you need to live someplace. When you own 1 place you are neutral and you aren’t long in housing until you own multiple places.
You make few wrong assumptions here:
Rent is much cheaper than mortgage. I don’t know about your country, but where I live mortgage is cheaper than rent. People actually buy flats, rent them out, pay mortgage out of rent income and even make small cash on top of it.
Comparing house to farmland is not fair. I can start comparing house to having kitchen utensils. Most of the people I know still cook their own food instead of ordering deliveries. And most of the people I know buy cars instead of renting them.
When you rent, you don’t have a control over your house. You would like to get new kitchen? Well, your landlord has different idea. So what, you gonna move out? Every stupid thing you want changed, you don’t really can.
Lastly, it’s a hedge. If you buy house to get wealthy, that might not be best idea. But if you buy it, because you want to live long term somewhere, then mortgage is a way to get “guaranteed rent”. No need to worry that because of some stupid market bubble, suddenly your rent will skyrocket.
Point 4 said a slightly different way: when you rent you are arguably shorting housing since you need to live someplace. When you own 1 place you are neutral and you aren’t long in housing until you own multiple places.
It can be , if rented accommodation is publically owned , and not-for-profit, but the UK has stepped back from that .