Re:How housing became the world’s biggest asset class
by refurb on Wednesday January 22, 2020 @03:00PM
(#22121400)
Yes, but what about property taxes, maintenance, transaction costs (6% to sell!) and opportunity cost of your down payment.
I've run the number in the past and in some markets it's clearly cheaper to own than rent (typically where there is slow but steady increases in prices - mid-west US). For other markets, you need 3-5% asset price increases just to break even with renting after 10 years (bay area).
I've run the number in the past and in some markets it's clearly cheaper to own than rent (typically where there is slow but steady increases in prices - mid-west US). For other markets, you need 3-5% asset price increases just to break even with renting after 10 years (bay area).