>but mortgage principal is not an expense. this isn't entirely true either. You need to live somewhere. Yes you own the equity, but it's always going to be l

>but mortgage principal is not an expense. this isn't entirely true either. You need to live somewhere. Yes you own the equity, but it's always going to be locked away as "home equity". It has an advantage of giving you higher debt flexibility by taking loans out against it - but to say it is the same as banking cash as compared to renting is wrong. Unless you downsize your living or sell the house without buying another one (which means you will be renting) that money is effectively gone as far as liquid cash is concerned