I’d be curious to know your logic why renting is cheaper than buying.
To explain: Even disregarding that a later sale price is an intrinsic inflation recoup, paying a mortgage also means any principle is recouped on sale, meaning only interest is the actual monthly “rent” after a sale, maybe decades later. Finally it’s rare property value doesn’t go up, which also reduces the costs. Despite all these benefits, you still found renting and investing the difference gave better returns?
I guess it is a varying thing. Where I am from, the housing market in basically any place that isn’t super remote is already insane, buying basically any property in the region I am living in currently would cost me about 80% of my money as a down payment. I would have to work for about another decade just to get back to the same amount of savings, but the housing market is so crazy that I really have no idea where it will be a decade from now, there is a very real possibility of a collapse that will devalue the property. The advantages of renting for me are basically:
I am okay with extremely tiny homes, so I am able to rent an apartment that was illegally split and because it is tiny the rent is very low (and no roommates which is great) (my current place is 15m² or 160ft² or 1.2 Cybertrucks or 5 golf carts or 1200 big macs)
I am still not settled on which region I want to live in for the long term, so renting gives me the flexibility to move as I need
Being a landlord sucks and I don’t want to do that
my current savings being invested make significantly more revenue than any rent I would be able to take from any property within my price range.
The stock market is low commitment and variable in both size and risk of investment. If I fear that there might be a financial collapse soon I can sell my stocks and buy something else (other stocks, gold, monero, cash, etc) while if a housing crisis seems to start, selling my house would take weeks-months.
If somehow I find myself really settling down in a specific area, and find a really good deal, I still might do it, but I really really doubt, it will only happen if it is a really good deal on a place that I really want to live in.
I’d be curious to know your logic why renting is cheaper than buying.
To explain: Even disregarding that a later sale price is an intrinsic inflation recoup, paying a mortgage also means any principle is recouped on sale, meaning only interest is the actual monthly “rent” after a sale, maybe decades later. Finally it’s rare property value doesn’t go up, which also reduces the costs. Despite all these benefits, you still found renting and investing the difference gave better returns?
I guess it is a varying thing. Where I am from, the housing market in basically any place that isn’t super remote is already insane, buying basically any property in the region I am living in currently would cost me about 80% of my money as a down payment. I would have to work for about another decade just to get back to the same amount of savings, but the housing market is so crazy that I really have no idea where it will be a decade from now, there is a very real possibility of a collapse that will devalue the property. The advantages of renting for me are basically:
If somehow I find myself really settling down in a specific area, and find a really good deal, I still might do it, but I really really doubt, it will only happen if it is a really good deal on a place that I really want to live in.