4 ms·

I can see two main reasons. When the mortgage is paid off: 1) you own a valuable asset. 2) your cost of living falls dramatically.

paulcole 3y ago
> 1) you own a valuable asset I guess this one is a matter of perspective. I don't see a house as an asset in my life. > 2) your cost of living falls dramatically My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner. They only start catching up after decades.
- MattPalmer1086 3y ago
  Well, I see my house as my home. But I do know that if things ever got rough I could sell it and live somewhere cheaper with a good chunk of money left over. So it is an asset, even if you don't think of it like that on a daily basis. Whether renting is cheaper than buying varies. In the short term it often is, but not always. There is generally a long term point where buying is cheaper - but again, not always! If you can do something else with the money you save renting, then good for you. To put this on context, to rent a house in my street is only a tiny bit cheaper than a mortgage on it. So it would not make long term sense to rent unless you had no choice.
- jjav 3y ago
  > I don't see a house as an asset in my life. But you do! You said you are paying rent, thus you attach value to having a place to live. > My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner. In the other response you acknowledged this is from comparing rent on a tiny apartment to mortgage on a house, which cannot be compared. If you don't need a house you could buy a tiny apartment. That gives you the benefit of a low mortgage now and zero mortgage when you're older.
  - paulcole 3y ago
    > But you do! You said you are paying rent, thus you attach value to having a place to live. I mean obviously it’s an asset in that it adds value to my life b/c without it I’d be homeless. Thx for pointing that out.

paulcole 3y ago

> 1) you own a valuable asset I guess this one is a matter of perspective. I don't see a house as an asset in my life. > 2) your cost of living falls dramatically My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner. They only start catching up after decades.

MattPalmer1086 3y ago
Well, I see my house as my home. But I do know that if things ever got rough I could sell it and live somewhere cheaper with a good chunk of money left over. So it is an asset, even if you don't think of it like that on a daily basis. Whether renting is cheaper than buying varies. In the short term it often is, but not always. There is generally a long term point where buying is cheaper - but again, not always! If you can do something else with the money you save renting, then good for you. To put this on context, to rent a house in my street is only a tiny bit cheaper than a mortgage on it. So it would not make long term sense to rent unless you had no choice.
jjav 3y ago
> I don't see a house as an asset in my life. But you do! You said you are paying rent, thus you attach value to having a place to live. > My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner. In the other response you acknowledged this is from comparing rent on a tiny apartment to mortgage on a house, which cannot be compared. If you don't need a house you could buy a tiny apartment. That gives you the benefit of a low mortgage now and zero mortgage when you're older.
- paulcole 3y ago
  > But you do! You said you are paying rent, thus you attach value to having a place to live. I mean obviously it’s an asset in that it adds value to my life b/c without it I’d be homeless. Thx for pointing that out.