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Consider that if those millennials are buying houses for 5x salary, then they must have been doing something right to save ~1x salary for a down payment. (Unles

Consider that if those millennials are buying houses for 5x salary, then they must have been doing something right to save ~1x salary for a down payment. (Unless people are somehow getting mortgages without down payments these days?) I agree that buying reduces mobility - and I plan on renting for the foreseeable future. What I take issue with is the claim that it's possible or desirable for to avoid debt at all costs. Renting is not automatically a better financial decision than mortgaging, and for people who don't need the mobility it can be substantially worse. Consider that the worst case scenario for ownership (your home depreciates to $0) is still better than the best case scenario for renting (your rent stays flat) because a renter wouldn't have an asset to sell anyway, but the owner gets to continue living there without paying for it.

techsupporter 11y ago
> they must have been doing something right to save ~1x salary for a down payment. (Unless people are somehow getting mortgages without down payments these days?) I thought it was common knowledge that virtually no mortgage requires 20% down and has not for many years. All of them do for mortgages without mortgage insurance, yes, but not to just get a loan. FHA wants 3.5%, most conventional loans will take 5%, and some large credit unions (NASA FCU, Navy Federal) will do 0% down and a lender credit for closing costs. As to the rest of your comment, I mostly agree. Debt is not a bad four-letter word if used properly. Lots of people, including millenials desperate to have "a real life," don't do that. Rent vs buy is really complicated and even though I own there are many times I'd rather rent (usually when something major fails)...