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Regarding point a): something to bear in mind is that rent payments are more or less guaranteed to keep going up, all things being equal. Mortgage payments are
by pmccool 17y ago
Regarding point a): something to bear in mind is that rent payments are more or less guaranteed to keep going up, all things being equal. Mortgage payments are not.
You also get some equity out of mortgage payments, whereas you don't out of rent. OTOH, getting money out of a house is more expensive and time-consuming that most kinds of investment I'm aware of.
I don't entirely disagree with the reasoning, mind you, but I think that direct comparisons between renting and buying are problematic.
- philk 17y agoTrue, but if you're investing the difference in index funds dividends will generally keep going up over time (somewhat in line with the capital appreciation). >> I don't entirely disagree with the reasoning, mind you, but I think that direct comparisons between renting and buying are problematic. It's a fair point but as you have to pick one or the other the only thing you can really do is crunch the numbers and account for the intangibles and then make the best decision you can.