3 ms·
The thing is, the person owning the place you rent is looking at their asset appreciating under you. They are going to either: raise your rent to keep pace, or,
by spfzero 5y ago
The thing is, the person owning the place you rent is looking at their asset appreciating under you. They are going to either: raise your rent to keep pace, or, sell it out from under you to someone who will rent it out for much more than you are paying. You should not count on your rent being stable in your calculations. They may still make sense, they may not.
- chii 5y agoRent is a cost that is going to need to be paid whether you live in the place, or rent it out. If you live in it, you pay (or lose) imputed rent anyway. If you currently can rent for lower than the cost of capital, you are ahead (except for taxation, which does change the equation - cost of capital for investment is cheaper, usually, than for home residence due to tax incentives).