5 ms·
Some people say "Well, you're paying more but you can also sell it for more afterwards". But non-homeowners are still paying more for less. That's the argument
by adflux 5y ago
Some people say "Well, you're paying more but you can also sell it for more afterwards". But non-homeowners are still paying more for less. That's the argument I am trying to make (poorly)
- xapata 5y agoMy rent doesn't change with interest rates.
- JKCalhoun 5y agoThat's true, rent keeps going up? A fixed loan doesn't change with interest rates either.
- xapata 5y agoRent increases are a cause of inflation (as part of the basket of goods that defines inflation), which in turn causes interest rate increases, which then cause home price decreases. Homes are like fixed-income securities. When interest rates go up, the value of existing securities goes down.
- sremani 5y agoSo does my mortgage that is why it is called 15 year FIXED.
- xapata 5y agoYes, as I said, you care about the monthly payment, not the lump sum price of the house.
- matwood 5y agoDaily no. But higher interest rates and high inflation absolutely leads to higher rents each year when your lease renews (unless of course your in some rent controlled environment).
- xwdv 5y agoNo, but in 20 years you’ll be paying rent with expensive 2041 dollars while the 30 year fixed rate mortgage is still being paid in cheap 2021 dollars.
- xapata 5y agoYes, but it turns out I came out ahead from 1990-2021 by having all my investments in the stock market instead of housing.
- dragonwriter 5y ago> Some people say "Well, you're paying more but you can also sell it for more afterwards". No, they don’t, even talking about non-homeowners, because non-homeowners aren’t paying that much more (rents aren’t increasing the way purchase prices are, the rstio between them is increasing), and non-homeowners have nothing to sell, unless you are referring to subleasing as selling. > But non-homeowners are still paying more for less. I think you mean “first-time homebuyers”, but that just means it is more attractive to invest elsewhere while renting than jump into personal home ownership. No one is losing anything, certain choices are just becoming less favored.