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More renters, too. A home owner, unless they are forced to move constantly, will often have a frozen mortgage payment which will allow the purchase of more expe
by anonymouskimmer 3y ago
More renters, too. A home owner, unless they are forced to move constantly, will often have a frozen mortgage payment which will allow the purchase of more expensive furnishings in later years. For renters the rent will keep increasing, eating up the increase in income.
- dehrmann 3y agoBut that hypothetical 20% down payment was in the stock market averaging 9% returns. Real estate in normal (not Bay Area) markets is more like 4%, but that doesn't include property tax or maintenance. The math isn't as clearly advantageous as conventional wisdom likes to claim, assuming you have the restraint to invest the money.
- anonymouskimmer 3y agoRenters are typically of lower socioeconomic status, so don't have that down payment invested in the stock market either.