But why should anyone buy a house for 3M, if you can rent it for 24k/year? 3M gives you 125 years of renting. In fact, you can set aside 100K for 4 years of re

But why should anyone buy a house for 3M, if you can rent it for 24k/year? 3M gives you 125 years of renting. In fact, you can set aside 100K for 4 years of rent, and allocate the rest - 2.9M - into working somewhere else, like bonds. Look, you put 2.9M into bonds yielding very conservative 3% per year (say, a mix of AAPL bonds and US treasuries), and you have 87K per year. 24K covers your rent, you have 63K to spend on drinks, you are not tapping your main capital, _and you live in 3M house for free_. Buying the same house commiting all your capital into it is very definition of insanity. Obviously it's too good to be true, so rents should rise.