Re:Investors bought a quarter of US homes sold last year
by random314 on Tuesday August 23, 2022 @03:33PM
(#32570185)
The OP is talking about a situation where it would be cheaper to rent your home in the future, than make mortgage payments on it.
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Re:Investors bought a quarter of US homes sold last year
by BeetleB on Tuesday August 23, 2022 @09:03PM
(#32573767)
Yes, but are we splitting the payments between principle and interest? In most cases, after a number of years, the rental cost easily exceeds interest + insurance + tax for the same size property.
Yes, it often seems the rental cost will be less than your monthly payments, but do realize that you lose all the rental cost, but not all your monthly payment.
Re:Investors bought a quarter of US homes sold last year
by random314 on Wednesday August 24, 2022 @12:55PM
(#32582259)
Its simple to demonstrate scenarios where a loss in property value ends up being more expensive for the homeowners than renters in the long run. We had a crisis in 2008 because of this.
There are online rent vs buy calculators that you can use to generate these scenarios.
https://www.calculator.net/rent-vs-buy-calculator.html
Plug in negative appreciation for property values and watch how the comparison tilts.