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Beep boop. Its still assets at the end of the day, no? Just because they don't sell it or they put a lot of money into it doesn't mean they can't. A renter doe
by taurath 11y ago
Beep boop.
Its still assets at the end of the day, no? Just because they don't sell it or they put a lot of money into it doesn't mean they can't. A renter doesn't have that option. I'm not making claims about its efficiency as an investment vehicle, I'm simply pointing out that in the example that I replied to you they'll end up with an asset worth more than the $40,000 they saved by not buying.
- gdilla 11y agoHe forgot to factor in the ~$250K cash downpayment to buy that $1MM mortgage. The opportunity cost on that over the next 30 years has to be added in. At 7% annual return (which you can get from Vanguard mutual funds) that 250K is worth almost $2MM in 30 years. Sure, rents will rise over time, but it's probably closer to a wash when you figure the insane downpayments you have to make.