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Because people who buy a place would like to reasonably be able to pay something that takes 30 years or similar to pay with the rent itself. That is a reason w
by germandiago 5y ago
Because people who buy a place would like to reasonably be able to pay something that takes 30 years or similar to pay with the rent itself.
That is a reason why you invest in the first place.
- munk-a 5y agoThat's a pretty arbitrary measure though - you're making "free" money either way to pay towards that mortgage while retaining the whole value of the asset while it is gradually purchased. Whether you've got enough to cover mortgage or not doesn't necessarily flip a binary switch making it a good investment or not. Property ownership is a market barred from entry by a high buy in cost to account for some risk - but the risk is rather minimal and most properties are going to be value accruing over time. We can observe this by looking at how cheap general property insurance tends to be (unless you're in a really risky area - i.e. building a house in a flood plain).
- germandiago 5y ago> That's a pretty arbitrary measure though It is, but I think I would find reasonable getting a mortgage if it does not impose a load on my finance by having it rented.
- deleted 5y ago[deleted]