3 ms·

Yep, right now the cost of money is more expensive than renting a house at 80% financing. So on top of this, if you decide to buy a house at 500k, you lock up

• lotsofpulp 3y ago
  > In conclusion: It only makes sense to buy right now, if I have an expectation that the price will go up on the home. What if someone does not want to deal with the volatility of a landlord, such as rental terms changing, or the property being sold, or the owner not maintaining the property? At a minimum, being able to ensure you don’t have to move your family due to landlord changing their mind is worth something.
  • madsbuch 3y ago
    you have protections around these things in most places, and especially in Denmark. also, renters I am referring to are commercial renters (so definitely not the cheapest ones).
• ethbr1 3y ago
  If you're putting 80% down in the US, I'd suggest the thought process is wrong. With good credit on a good property, 95% LTV isn't uncommon. Looking at residential property as a forever home is wrong. You're buying an asset, that happens to also let you not pay rent. Consequently, you want (1) value stability (see earlier qualities) and (2) leverage (as you get to keep all the profits and offset the interest). 80% LTV = 5x leverage of down-payment 95% LTV = 20x leverage of down-payment Given that your net rate of return should also be against your down-payment, shrinking that substantially boosts effective return at time of sale.