Re:Satellites Confirm Sinking of San Francisco's Millennium ...
by rdtsc on Friday November 25, 2016 @03:52PM
(#13039739)
> you could pay ~$5k/mo in rent forever and just leave when problems arise.
We saw our apartment kept raising our rent, and yet the housing market in the area was still recovering from the crash so we decided to buy.
> but if you taken that $1.5m (they go for much more[0]) and put it into index funds instead,
Granted most people don't have $1.5 probably. Going to the bank and asking for $1.5 to invest in the stock market might not work as well as going and asking for a home loan.
Also there interest paid on the home mortgage is tax deductible. That's another incentive.
Given that simply getting a $1.5 loan from a bank to do whatever investment doesn't work, most people think in terms of "what do I pay per month and what do I get for it". In some markets what people pay per month on a mortgage and a large house is less than what they'd pay in rent in a smaller apartment . And also rent could go up at any time. A fixed rate mortgage will stay the same.
We saw our apartment kept raising our rent, and yet the housing market in the area was still recovering from the crash so we decided to buy.
> but if you taken that $1.5m (they go for much more[0]) and put it into index funds instead,
Granted most people don't have $1.5 probably. Going to the bank and asking for $1.5 to invest in the stock market might not work as well as going and asking for a home loan.
Also there interest paid on the home mortgage is tax deductible. That's another incentive.
Given that simply getting a $1.5 loan from a bank to do whatever investment doesn't work, most people think in terms of "what do I pay per month and what do I get for it". In some markets what people pay per month on a mortgage and a large house is less than what they'd pay in rent in a smaller apartment . And also rent could go up at any time. A fixed rate mortgage will stay the same.