Housing Can’t Be Both Affordable and a Good Investment (2018)

Re:Housing Can’t Be Both Affordable and a Good Investment (2... by astura on Thursday May 02, 2019 @12:54AM (#19804862)

How so?

It costs thousands to buy a house

It costs thousands to sell a house

It costs thousands to maintain a house (I once spent, over $10,000 in one month on repairs)

It costs thousands in property tax and insurance

You pay thousands in interest and maybe PMI.

If the asset doesn't appreciate faster than inflation, where's the wealth building coming from? Sure, I'm not paying rent, but, honestly, it ends up being mostly a wash once you factor in all the expenses I am paying.

I bought a house because I wanted to own a house, not because i thought it would build wealth.

[ Parent | on HN ]

Re:Housing Can’t Be Both Affordable and a Good Investment (2... by azeotropic on Thursday May 02, 2019 @06:37AM (#19806423)

You're paying all the transaction costs and maintainance costs and tax and insurance costs when you rent too. The landlord passes them on to you in your rent.

One thing that can make it better to own (in the US) is that mortgage interest is tax deductible (at the federal level). Rent typically is not (although some states make rent tax deductible because voters naively believe this is a subsidy to renters and not to landlords).

[ Parent | on HN ]

Re:Housing Can’t Be Both Affordable and a Good Investment (2... by ap3 on Thursday May 02, 2019 @10:40PM (#19815040)

Not always the case because the market sets the rent - not the owners expenses

In CA I might be paying double the tax than my neighbors but I can’t charge more rent than them

[ Parent | on HN ]

Re:Housing Can’t Be Both Affordable and a Good Investment (2... by azeotropic on Saturday May 04, 2019 @06:43AM (#19825644)

Yes, but perennially unprofitable units are going to leave the rental market. So it's not like owners' expenses are not an input into the market price.

[ Parent | on HN ]