Assets do not need to have zero-length payback period. If you buy a house for a cash, it will take years, until you break-even. And that's fine, businesses dep

Assets do not need to have zero-length payback period. If you buy a house for a cash, it will take years, until you break-even. And that's fine, businesses depreciate assets like this for decades, too. If you buy a house with a mortgage, there are costs related to it too. You need to take it into account in your payback period. However, you will eventually reach break-even point and since that point, you own an fully paid-for asset, that your kids can inherit, for example. With renting, you will pay indefinitely, and own nothing. You are just paying for the service of accommodation.