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It's certainly more feasible to rent if you don't have the money to buy a house, which is why every single renter i know is doing do. I'm just not sure why thi
by airza 6y ago
It's certainly more feasible to rent if you don't have the money to buy a house, which is why every single renter i know is doing do. I'm just not sure why this is necessary or a valuable economic innovation that justifies the rent paid.
- em500 6y agoYou're not sure why it's a valuable economic innovation that people who don't have the money to buy a house can rent one? What alternative are you suggesting, that they should get a house for free?
- toast0 6y agoRentals are a useful innovation because the transaction is beneficial for both parties. The leasor turns their large investment into a stream of payments, and the leasee turns their stream of payments into use of a large investment without having to make such an investment and without needing to have the capability to make that investment. Avoiding making a large investment in property makes it easier for the leasee to move if needed, since there aren't significant costs to unwind a lease like there are to unwinding property ownership.