3 ms·
Except if the value of the real estate goes up.
by ec109685 10y ago
Except if the value of the real estate goes up.
- aianus 10y agoAh but my equities-heavy roboadvisor portfolio has gone up way more than the landlord's apartment...
- tehlike 10y agois it so? Is that still the case when your landlord leverages 20/80?
- nostrademons 10y agoUsually when mortgage interest + etc. > rent, it indicates that the property is overvalued and the value (over the long term) is more likely to fall than rise. Every other buyer - or almost every other buyer, except the ones that need to launder money - is making the same economic calculation, and if the cost of money to buy the property is more expensive than the rent you can earn from the property, they're not going to buy the property.