2 ms·

I don't think that's the case. Mortgage is just borrowing against your future worth. If some people over estimate that then it's their own problem. The problem

by axod 17y ago

I don't think that's the case. Mortgage is just borrowing against your future worth. If some people over estimate that then it's their own problem. The problem is usually silly people borrowing far more than they can afford, and lenders trying to push people into borrowing more than they can afford. But that's not a problem with mortgages per se. Renting is ok if you like throwing money away, or need to move often.

Retric 17y ago
It's not just a question of needing to move often as much as benefiting from being able to move often. I walk to work and save a lot of time and money by doing so. But, I was willing to take a job with an hour+ commute because I knew I could quickly move there. PS: The cost of renting tends to balance with the costs of buying a home (including transaction and maintenance costs etc) such that it's rare for one to win out over the other in a healthy housing market. I do spend a lot of money living in this area, but I also invest a lot more money than I could if I was trying to buy in the area even with a long commute. Even with the huge drop in housing costs buying in this area is extremely expensive in large part due to the number of people renting their houses / condo's.
theBobMcCormick 17y ago
I don't understand the throwing money away idea about renting. Are you anticipation appreciation (good luck for the foreseeable future)? Is it the home mortgage deduction you're so excited about? For most people, unless they're sure they're gonna be in their home for a long time (10+ years maybe?) I'm not sure how purchasing is worse than renting.
- axod 17y ago
  In the UK house prices have risen well. And personally I like staying the same place for at least 5 years.
  - theBobMcCormick 17y ago
    I think a desire/plan to stay in one place for an extended period of time is a good reason to purchase a home. The best reason really. But I think if you're pretty uncertain about whether you'll want to spend 10+ years in 1 house it makes more sense to rent. And I really don't understand so many people have bought into this meme that renting is "throwing money away". The facts just don't seem to support that conclusion.

by axod 17y ago

Retric 17y ago

It's not just a question of needing to move often as much as benefiting from being able to move often. I walk to work and save a lot of time and money by doing so. But, I was willing to take a job with an hour+ commute because I knew I could quickly move there. PS: The cost of renting tends to balance with the costs of buying a home (including transaction and maintenance costs etc) such that it's rare for one to win out over the other in a healthy housing market. I do spend a lot of money living in this area, but I also invest a lot more money than I could if I was trying to buy in the area even with a long commute. Even with the huge drop in housing costs buying in this area is extremely expensive in large part due to the number of people renting their houses / condo's.

theBobMcCormick 17y ago

I don't understand the throwing money away idea about renting. Are you anticipation appreciation (good luck for the foreseeable future)? Is it the home mortgage deduction you're so excited about? For most people, unless they're sure they're gonna be in their home for a long time (10+ years maybe?) I'm not sure how purchasing is worse than renting.

axod 17y ago
In the UK house prices have risen well. And personally I like staying the same place for at least 5 years.
- theBobMcCormick 17y ago
  I think a desire/plan to stay in one place for an extended period of time is a good reason to purchase a home. The best reason really. But I think if you're pretty uncertain about whether you'll want to spend 10+ years in 1 house it makes more sense to rent. And I really don't understand so many people have bought into this meme that renting is "throwing money away". The facts just don't seem to support that conclusion.