[RightWhale]

These 'renters' do own in the sense that they can sell the property whether they have actual equity or not. If the price is up 15% at the time, they are shrewd indeed. If prices stabilize or decline, they might not be considered shrewd any longer. Roll the dice.

[GOPJ]

These 'renters' do own in the sense that they can sell the property whether they have actual equity or not. If the price is up 15% at the time, they are shrewd indeed. If prices stabilize or decline, they might not be considered shrewd any longer. Roll the dice.

You're right - and if they flip after two years (this might have changed again) the profit isn't taxed. The money can be invested. When (or if) the housing market slows, the interest only loan can be switch to a fixed rate and the "renter" becomes a home owner in 30 years... Looks like a win-win to me.