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The interpretation I've heard is that the dividend is the rent. You can rent it to someone else for a few percent of its value per annum (which definitely looks
by cjbillington 7y ago
The interpretation I've heard is that the dividend is the rent. You can rent it to someone else for a few percent of its value per annum (which definitely looks like an investment), but even if you don't, it's still paying the dividend in the form of you not having to pay rent each month, which would be the case if you didn't own the place.
- alexmingoia 7y agoThe rent is profit only after the loan is paid, minus property taxes, repairs, insurance, and management costs. If one isn’t living in the house then it’s not a home and they aren’t a homeowner, they’re in the property management business. My point is that obtaining a mortgage on a house is not necessarily an investment, particularly if one plans on living in it. Yet I often hear from homeowners that their home was a “good investment” despite never having realized a gain on it, and never planning on selling it.