3 ms·

It's a way to build wealth. If you're renting, you're building someone else's wealth.

deleted 11y ago
[deleted]
vinceguidry 11y ago
I hate this argument, even though I prefer to buy as well. Buy food rather than grow your own? You're building someone else's wealth. Also, mortgage interest is no joke and is never accounted for in these rationalizations.
- dclowd9901 11y ago
  If you plan to sell, the calculation is much more complicated. I wouldn't buy a house unless it was one I was keeping (which is what I'm doing now). It's equivalent to a very expensive savings account. What do you get at the end of 30 years of renting? A big fat goose egg. Rent cost has to be insanely low to compete with owning a house in the long term.
- repsilat 11y ago
  mortgage interest And once you've paid off your mortgage, there's still investment opportunity cost. I agree that owning may be the smart thing to do on balance (though things like stamp duty add too much friction for me), but it isn't a slam dunk.
- someguydave 11y ago
  > mortgage interest Which is subsidized by the US Government in the US in the form of tax deductions.
  - vinceguidry 11y ago
    Which really only benefits the rich. You have to itemize to take advantage of the deduction, and then you're only saving money over and above the standard deduction. Unless you buy a really expensive house, or have lots of other deductions, then you save a couple thousand dollars a year at most. Which isn't peanuts, but shouldn't figure prominently into the decision to buy a home or not. Always run the numbers. Numbers are the difference between emotion and logic.
    - someguydave 11y ago
      >Which isn't peanuts, but shouldn't figure prominently into the decision to buy a home or not. No but the point is the government literally pays you (maybe not much, but a few $k) to own a house. This is a form of discrimination against renters and causes the marginal guy ("should I buy a house or rent?") to lean towards "buy" for no good economic reason.

deleted 11y ago

[deleted]

I hate this argument, even though I prefer to buy as well. Buy food rather than grow your own? You're building someone else's wealth. Also, mortgage interest is no joke and is never accounted for in these rationalizations.

dclowd9901 11y ago
If you plan to sell, the calculation is much more complicated. I wouldn't buy a house unless it was one I was keeping (which is what I'm doing now). It's equivalent to a very expensive savings account. What do you get at the end of 30 years of renting? A big fat goose egg. Rent cost has to be insanely low to compete with owning a house in the long term.
repsilat 11y ago
mortgage interest And once you've paid off your mortgage, there's still investment opportunity cost. I agree that owning may be the smart thing to do on balance (though things like stamp duty add too much friction for me), but it isn't a slam dunk.
someguydave 11y ago
> mortgage interest Which is subsidized by the US Government in the US in the form of tax deductions.
- vinceguidry 11y ago
  Which really only benefits the rich. You have to itemize to take advantage of the deduction, and then you're only saving money over and above the standard deduction. Unless you buy a really expensive house, or have lots of other deductions, then you save a couple thousand dollars a year at most. Which isn't peanuts, but shouldn't figure prominently into the decision to buy a home or not. Always run the numbers. Numbers are the difference between emotion and logic.
  - someguydave 11y ago
    >Which isn't peanuts, but shouldn't figure prominently into the decision to buy a home or not. No but the point is the government literally pays you (maybe not much, but a few $k) to own a house. This is a form of discrimination against renters and causes the marginal guy ("should I buy a house or rent?") to lean towards "buy" for no good economic reason.