Comment on Haha yes society is great

• berg@lemmy.zip ⁨2⁩ ⁨weeks⁩ ago

  Line go down, rent go up. What do?

  This is just not true for many people. A home is an asset. When paying a mortgage, you build equity that can be recouped if you decide to sell, or which can be used as collateral for another loan. When renting, you are still paying a mortgage, except is the landlord’s and you own nothing. Rent prices can also change at any time and by large amounts, forcing renters to move. The cost of owning a home is much more stable and predictable.

  Homes are also typically bought with a loan and a relatively small down payment, making them a leveraged asset. Eg, if you put down 30k on a 300k house and prices increase 5%, the value of your home just went up 15k. If you instead just put 30k in stocks, you would need an increase of 50% to get the same result.

  Regardless, when it comes to housing, your primary concern should always be stability and not “profitability”.

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  • ieGod@lemmy.zip ⁨2⁩ ⁨weeks⁩ ago

    This is one of the greatest myths out there. Renting usually comes out ahead by the numbers. Ramit Setgi has a lot to say on the topic, with a US focus. Ben Felix has the same perspective for the Canadian side. Home owners by and large aren’t honest with themselves about the total cost of ownership.

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    • gandalf_der_12te@discuss.tchncs.de ⁨2⁩ ⁨weeks⁩ ago

      yeah i was gonna say, some dude published an analysis of the total cost of buying a house / renting an apartment + investing in stocks for the same total yearly expenses and found that with the second option, you end up having more wealth at retirement age.

      i can’t find the study rn but i’m sure i remember it.

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