2 ms·
Sure, but you are also forgoing the addtional rent that you could be earning if you did not live there.
by liamcardenas 8y ago
Sure, but you are also forgoing the addtional rent that you could be earning if you did not live there.
- jdblair 8y agoI'm not forgetting. I have to live somewhere. If I pay rent somewhere else I'm paying market rent. That is the gp's point.
- liamcardenas 8y agoYes, but if you live in your own home, you are still paying market rent by means of opportunity cost. You are renting to yourself-- at the market rate.
- jdblair 8y agoI still don't follow. As market rent goes up you will be renting to yourself below market rate. Suppose market rent is $2000/month and my mortgage is $2000/month. In 10 years market rate rent has gone up, but my mortgage is still $2000/month.