People aren’t rational. There are many people around here in Toronto that will buy a home and rent it at a loss because “home prices always go up”. I did the m

People aren’t rational. There are many people around here in Toronto that will buy a home and rent it at a loss because “home prices always go up”. I did the math and my previous landlord was losing money on a cash flow basis renting to me; the rent could not have covered the property tax, condo fees, and mortgage interest (or inflation / opportunity cost if he owned outright). My long distance girlfriend at the time also knew a family who owned a $2m house and left it empty while they lived in HK. We used to stay in it when she was in town. They were too rich to care and “home prices always go up”.