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I never find this answer convincing. Firstly, most renters are unlikely to invest the difference - we are a nation of spenders. Secondly, that rent will creep u
by russgray 14y ago
I never find this answer convincing. Firstly, most renters are unlikely to invest the difference - we are a nation of spenders. Secondly, that rent will creep up, whereas my mortgage payment stays the same - eventually that difference will disappear, or even open up in the other direction. Thirdly, I'll have paid off my mortgage in another 12 years or so, at which point I can invest my entire payment every month whilst rent still needs to be paid. Over the time period I intend to stay in my house, I am confident I'll make out like a bandit compared to if I'd rented it.
- philwelch 14y agoDidn't we just learn that "investing" in real estate isn't always the best idea, either? Buying a house to live in on credit is part spending, part leveraged speculation.
- russgray 14y agoMeh, I don't consider my house an investment (in that I don't expect it to generate a return), it's somewhere to live. Most people understand that a car is a terrible 'investment', but if you intend to drive the same one for a decade you're better off buying it than leasing it. Same thing, but different scale.