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Owning comes with two big benefits. First, if you own your home, you can more easily withstand a financial crisis, whether it be a lost job, medical bills, or

Owning comes with two big benefits. First, if you own your home, you can more easily withstand a financial crisis, whether it be a lost job, medical bills, or a totaled car...at least you have somewhere to live. If you can't pay rent and become homeless, it's a lot harder to recover. Second, you can pass it on to your kids so at least they'll have some security. If you rent, you can't give them that. But both of those only apply once you've paid off the mortgage. With the trends being cost of living increasing while pay rates stagnate or decrease, and cost of real estate having skyrocketed in the last few decades, for a lot of people, even middle class, it becomes an unrealistic dream to actually be able to pay off a mortgage within a single lifetime.

ianferrel 13y ago
That's not really a difference between owning and renting. It's a difference between having assets and not having assets. If you remove the hidden variable, it probably tilts in favor of the renter. Someone who rents and has, say, $100k in the stock market or bonds is arguably in a better position than someone with a $100k house. The renter can much more easily move to a new location to get a better job. Plus, they can afford to eat and pay other expenses while doing so. You can't eat a house.
- walshemj 13y ago
  But almost all people wont be able to build up 100k whilst renting. The difference between renting and mortgage if it existed woudl never allow you to build up this nest egg and 90% of people dont have the discipline to invest in this way they would spend it on day to day living.
hesdeadjim 13y ago
Unfortunately you are incorrect on your first point as you are ignoring property taxes. Taxes are relatively low where I live (Boulder, CO) and on my property I still have to pay $500 a month in taxes. If I lose my job and my ability to pay, it doesn't matter if I fully own my house as the government can just take it from me if I am delinquent for too long. I am totally against house ownership unless you have enough money to put up a large down payment and enough to also withstand fluctuations in your ability to pay -- otherwise it really seems like a sucker's bet to me.
- snowwrestler 13y ago
  If you were renting the same property, would your rent be $500 a month? I doubt it, so even with property taxes you're still better off than renting.
  - userulluipeste 13y ago
    When you are a house owner, pay the property tax and have a house to let, you do not really dictate the renting price. You may try, but in the end you can only have the highest bid. Won't you rent just to alleviate the ownership costs? When so many got in the house-ownership game it become pretty much the renter's market. The renter can be choosy, you - can not.

ianferrel 13y ago

That's not really a difference between owning and renting. It's a difference between having assets and not having assets. If you remove the hidden variable, it probably tilts in favor of the renter. Someone who rents and has, say, $100k in the stock market or bonds is arguably in a better position than someone with a $100k house. The renter can much more easily move to a new location to get a better job. Plus, they can afford to eat and pay other expenses while doing so. You can't eat a house.

walshemj 13y ago
But almost all people wont be able to build up 100k whilst renting. The difference between renting and mortgage if it existed woudl never allow you to build up this nest egg and 90% of people dont have the discipline to invest in this way they would spend it on day to day living.

hesdeadjim 13y ago

Unfortunately you are incorrect on your first point as you are ignoring property taxes. Taxes are relatively low where I live (Boulder, CO) and on my property I still have to pay $500 a month in taxes. If I lose my job and my ability to pay, it doesn't matter if I fully own my house as the government can just take it from me if I am delinquent for too long. I am totally against house ownership unless you have enough money to put up a large down payment and enough to also withstand fluctuations in your ability to pay -- otherwise it really seems like a sucker's bet to me.

snowwrestler 13y ago
If you were renting the same property, would your rent be $500 a month? I doubt it, so even with property taxes you're still better off than renting.
- userulluipeste 13y ago
  When you are a house owner, pay the property tax and have a house to let, you do not really dictate the renting price. You may try, but in the end you can only have the highest bid. Won't you rent just to alleviate the ownership costs? When so many got in the house-ownership game it become pretty much the renter's market. The renter can be choosy, you - can not.