Re:How housing became the world’s biggest asset class
by slumdev on Thursday January 23, 2020 @09:08AM
(#22127609)
Do you continue paying yourself rent after the mortgage is paid?
And how is the rent "income" not offset by an equal rent expense?
Re:How housing became the world’s biggest asset class
by chii on Thursday January 23, 2020 @07:42PM
(#22134155)
> Do you continue paying yourself rent after the mortgage is paid?
yes, in a sense. The fact that you're not getting paid a rent from somebody else doesn't mean there isn't value. You could think of it as opportunity cost - owning a property but not getting rent from it.
> And how is the rent "income" not offset by an equal rent expense?
it is exactly offset-ed if you lived in that property.
All assets generate a return, some just do so badly (or negative returns). Anything that's not an asset is a consumable (like food).