If the net cost of renting is lower than the net cost of renting money to own a mortgage, then you've still got the option of investing in other assets which may appreciate over time. Say, a business. Which represents real net economic growth, not merely asset inflation.
If you plan to be in a location for more than a year, it's worth buying a home.
Stating that as a blanket recommendation is so false it's not even wrong.
A buy-vs-rent decision depends on a great many factors, including transaction costs (high for real estate sales), moving costs, appreciation risks, etc. There are many areas where even a 10-15 year tenancy may favor renting over buying.
Mortgage payments (minus interest) are then just going back into your own pocket.
Not if your property's under water. Haven't we learned anything?
It's a figure of speech. The idea is that your apartment's current market value is lower than your outstanding debt (or perhaps the total price you paid for the apartment).
If the net cost of renting is lower than the net cost of renting money to own a mortgage, then you've still got the option of investing in other assets which may appreciate over time. Say, a business. Which represents real net economic growth, not merely asset inflation.
If you plan to be in a location for more than a year, it's worth buying a home.
Stating that as a blanket recommendation is so false it's not even wrong.
A buy-vs-rent decision depends on a great many factors, including transaction costs (high for real estate sales), moving costs, appreciation risks, etc. There are many areas where even a 10-15 year tenancy may favor renting over buying.
Mortgage payments (minus interest) are then just going back into your own pocket.
Not if your property's under water. Haven't we learned anything?