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Rents increase with inflation, a mortgage doesn't. I have a few older friends kicking themselves for not buying a property when they could afford it, rents hav
by flukus 5y ago
Rents increase with inflation, a mortgage doesn't.
I have a few older friends kicking themselves for not buying a property when they could afford it, rents have risen and there is a very real prospect that they will have to move out of the community they spent their lives in.
- allendoerfer 5y agoMortages do increase with faster growing inflation, though, once the central bank reacts and increases the interest rates. Of course you can negotiate a fixed interest rate for some time period. So there are two buffers in between.
- indemnity 5y agoNot to mention, if you live in any Western country, real estate capital gains since 2010 have been immense, so interest-only mortgages could have made sense.