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> If you never save and always rent I see that as a red herring. The key if you are going to rent is to save the difference between what your rent is and what
by dolinsky 16y ago
> If you never save and always rent
I see that as a red herring. The key if you are going to rent is to save the difference between what your rent is and what your mortgage + other costs of ownership would be and put that capital to work for you through other investment vehicles. In America there is this convoluted idea that 'everyone should own a home'. It's a ridiculous premise and should be nothing more than a pipe dream for many people who do currently own a mortgage on a home.
http://www.nytimes.com/interactive/business/buy-rent-calculator.html http://www.nytimes.com/interactive/business/buy-rent-calcula...
- fennecfoxen 16y agoYeah. The problem with housing is that people are told "the house is an investment". Houses are lousy places to grow capital. Their primary method of generating a meaningful return on your investment is the imputed rent. But you have to consume the imputed rent immediately. Some spending on housing is inevitable, and some is just consumption. Investing in a house to secure the former is responsible; the latter is luxury and irresponsible if you can't afford it. Also, people underprice issues like maintenance and risks as a matter of routine.