The second argument makes sense, but it doesnt seem to me like the math really checks out. That is to say, yes, a house will appreciate, but so will the money invested in a company concerned with buying, creating, maintaining, and renting houses.
Except that if you live in your investment , you save on rent. So you make at least one profit, and maybe two.
100/monthover38years.Or,assumethatthesamepersoninvested50 monthly in the SNP500 re-investing all dividends (averaging out an 11.3% increase every year) and spent 50$ on rent.
You’re assuming rent is half of mortgage. Why would it be, for equivalent accommodation?
I kind of see your point about the personal and societal benefits of renting, but there are a lot of ifs and buts. Whether renting is a good option depends a lot on the regulatory system and state policy. If renting is built on top of a largely mortgage-backed private ownership market, it’s going to be largely disadvantageous to the renter.
Unless you are moving from place to place to take up reasonably well paying jobs, which I did for a while myself.
And I kind of see the downsides of the property ownership obsession. In the UK, property is so much better than anything else as an investment that bonds and equities are almost ignored by the median person. Yet a lot of the gains are re-absorbed in swings and roundabouts—once a family pay off a mortgage, the equity is needed to get the next generation “on the ladder”, and so on.
Except that if you live in your investment , you save on rent. So you make at least one profit, and maybe two.
You’re assuming rent is half of mortgage. Why would it be, for equivalent accommodation?
I kind of see your point about the personal and societal benefits of renting, but there are a lot of ifs and buts. Whether renting is a good option depends a lot on the regulatory system and state policy. If renting is built on top of a largely mortgage-backed private ownership market, it’s going to be largely disadvantageous to the renter.
Unless you are moving from place to place to take up reasonably well paying jobs, which I did for a while myself.
And I kind of see the downsides of the property ownership obsession. In the UK, property is so much better than anything else as an investment that bonds and equities are almost ignored by the median person. Yet a lot of the gains are re-absorbed in swings and roundabouts—once a family pay off a mortgage, the equity is needed to get the next generation “on the ladder”, and so on.