Re:Ever-increasing home values are a Ponzi scheme
by quantified on Monday June 21, 2021 @11:21PM
(#27587592)
Building equity isn’t “losing” money. It is tying it up, sure. If you have enough free cash so that investing beyond rent gives you a decent rate of return, great. In high-rent parts of the country, rent sucks enough you don’t have that. And, your landlord can kick you out in the middle of a school year if your lease is up.
Re:Ever-increasing home values are a Ponzi scheme
by sokoloff on Monday June 21, 2021 @11:56PM
(#27587826)
Tying money up in a vehicle that grows more slowly than its likely substitute investment is “losing money” in one’s total financial picture. If it grew more slowly than inflation, it could remain affordable to others but terrible for the present owners.
I’m pro owner-occupied housing. I think it’s good for families and good for the community/society. But in the hypothetical where it grows more slowly than inflation, renting starts to look a lot better than it does currently.
Re:Ever-increasing home values are a Ponzi scheme
by 8note on Monday June 21, 2021 @08:30PM
(#27586455)
Rentals should always be more expensive than buying then, no? You're gaining a service overtop of the place to live. Not to mention, you should be able to leave atyhe drop of a hat, rather than be required to have a 1 year lease
Re:Ever-increasing home values are a Ponzi scheme
by sokoloff on Monday June 21, 2021 @08:41PM
(#27586563)
Renting hotel rooms is more expensive than a month-to-month lease is more expensive than a year-long lease, so that all checks out to agree with your premise.
Whether renting or buying is more expensive depends on your market’s outlook for property prices. But in an environment where they don’t go up, I’d definitely expect renting to cost more.
There’s plenty of beneficial flexibility afforded by renting, even if you can afford to do either one.
Plus, if housing doesn’t go up in value like an investment, why would you want to tie up a downpayment and tie yourself down, losing money all the while? You’d have more incentive to rent and invest your down payment money.