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This is another aspect that should be considered and that is a huge plus in favor of buying. Because of inflation the cost of the mortgage will go down and afte
by jnardiello 13y ago
This is another aspect that should be considered and that is a huge plus in favor of buying. Because of inflation the cost of the mortgage will go down and after 30yrs it will be a lot cheaper. As a practical example, my family purchased a house 20yrs ago. At that time we payed the equivalent of $600 which was quite expensive. Today it's just nothing while the house itself gained a lot in value.
- snowwrestler 13y agoInflation and taxes are easily forgotten when making financial decisions; but they are the two biggest advantages of owning vs renting, at least in the U.S. Short-term cash flow is not a smart way to evaluate rent vs own.
- jrs235 13y agoWhat about the aspect of being able to move without having to worry about whether you can sell you home or not? I believe what made things worse after the economy soured was that unemployed people stuck. Even unhappy people were stuck in jobs they didn't like/enjoy because they couldn't move to another part of the country (or state). One must not forget about opportunity costs in buying vs renting.
- prostoalex 13y agoThe proper comparison should be the difference between rent payment and mortgage payment invested in S&P 500 30 years ago, not the difference just sitting there and earning 0%.