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I guess it depends on the rental vs purchase market where you are.

Here in outer London, rental prices are pretty much in line with the interest payments on a mortgage. So you're "throwing away" the same amount whether you're renting or not. I'd have thought this would become a natural equilibrium in most places. If rental prices are significantly more than the interest payments on a mortgage then owning will seem more attractive.

Mortgage still has value in that it gives you the opportunity to invest that in a house if that's something you want to do.



Anyone deciding whether to purchase a home should play with this calculation of the tradeoffs first: http://www.nytimes.com/interactive/business/buy-rent-calcula...




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