Rent will forever increase, but your mortgage will not and you’ll pay the same property taxes in both cases.
Rent will forever increase, but your mortgage will not and you’ll pay the same property taxes in both cases.
~~~
Right.
Sure, homeownership can have additional costs and monetary risks when compared to ‘other investments’, and even when compared to renting. However, once you put it into the context of renting versus owning, then all the money (despite the lack of risks) spent is lost. There is no equity gained. So the risk argument falls on it’s face, because you are trading lower risk for zero reward.
“your mortgage will not”
Unless you get a variable rate mortgage, of course.
Made more sense when rates were really low. All this depends on what your personal circumstances are.
When mortgage rates were crazy low it was always a good idea if you maintain the property.
Financial planner Bob Brinker used to tout this approach 50 years ago on his national radio simulcast. I agreed with his approach, i.e. sleep well at night, no worries. He also said when you get to the point where your assets are throwing off enough income your sole worry each day is do I sail north or south on the intercoastal waterway!