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A comment on Why the New American Real Estate Dream Is Renting. Parent comment

Re:Why the New American Real Estate Dream Is Renting by yummyfajitas on Saturday August 15, 2009 @03:24PM (#765093)
Mathematical identity:

    price to own = price to rent + speculative ownership premium + transaction costs
If you rent, you get to keep that speculative ownership premium and the transaction costs.

An additional problem with owning is that your investments are bound to your living situation. Orthogonality is good. I can change my living situation without even thinking about my investments.

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Re:Why the New American Real Estate Dream Is Renting by pg on Saturday August 15, 2009 @03:27PM (#765095)
On average the owner does get something in return for the speculative ownership premium, though, so you have to factor that out.
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Re:Why the New American Real Estate Dream Is Renting by randallsquared on Saturday August 15, 2009 @04:57PM (#765209)
Ownership and renting do not have that simple a relationship; it's easy for them to get out of sync such that renting is more expensive than owning, for a time.
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