patrick.net

dublin hillz says

Do you share the same outrage for apartment complexes that fleece people?

It's not any worse than rent paid on borrowed money, a.k.a. interest.

Both rent and mortgage interest (plus property taxes, insurance, and maintenance) are money "down the drain" paid to "the man."

freak80 says

dublin hillz says

Do you share the same outrage for apartment complexes that fleece people?

It's not any worse than rent paid on borrowed money, a.k.a. interest.

Both rent and mortgage interest (plus property taxes, insurance, and maintenance) are money "down the drain" paid to "the man."

Yes, they are both money down the drain, but the interest on a fixed rate loan goes down every month while in the long term, rent is projected to go up at the rate of inflation to be modest. Since inflation is rougly 3.1% per year, we can make a reasonable educated guess that in 24 years, the rent will double. This inverse relationship between rent and mortgage interest in the long run gets seriously magnified. Personally, I think it is a mistake to always consider the cost of renting vs owning in year 1 and leave it at that. This analysis should be done over the remaining lifetime of each person.

dublin hillz says

Personally, I think it is a mistake to always consider the cost of renting vs owning in year 1 and leave it at that. This analysis should be done over the remaining lifetime of each person.

You make a good point. For people with secure jobs in stable industries, who plan to "stay put" for many years that should be done.

But people tend to move around a lot. Especially in "high tech" high-risk careers. The transaction costs of buying/selling houses is significant. Realtors need their 6%. If you move every 5 years, those costs will eat you alive!