Timeline for Why do some people say a house "not an investment"?
Current License: CC BY-SA 2.5
7 events
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| Aug 21, 2016 at 15:01 | comment | added | user | @Neuromancer Ask them the same question when their owned properties have dropped 10-30% in price and they are looking at needing to move elsewhere. At least if you rent, the maximum cost to you to move at any time is reasonably limited, perhaps a few thousand dollars in a really upscale neighborhood in a major metropolitan area, obviously depending on the termination clause of your contract but always predictable. If you buy, and have to sell at an inopportunate time, you could stand to lose a significant fraction of the principal, which will likely have to be covered by an unsecured loan. | |
| Feb 17, 2014 at 17:28 | comment | added | Neuromancer | ask the people priced out by rent increases in places like SF how they fell about renting vs owning | |
| Oct 11, 2013 at 0:06 | comment | added | DJClayworth | In the early days it is a very small fraction of your payments that are reducing your debt. Sometimes you would end up with more money by renting, and paying the difference between cost of renting and cost of owning into a savings account. | |
| Oct 10, 2013 at 20:11 | comment | added | mote | @DJClayworth - You're absolutely right. However, you're still paying yourself (in the sense that you're reducing your debt). | |
| Jan 13, 2011 at 19:09 | comment | added | DJClayworth | "You're paying yourself instead of someone else" is not alwaus a helpful one. The vast majority of your early mortgage payments are paying someone else - the bank - in interest. | |
| Sep 30, 2010 at 8:12 | comment | added | NimChimpsky | +1 I would add that its really hard to find somewhere you actually want to buy, and when you do find it the price may have little relation to average prices quoted in media etc. | |
| Sep 28, 2010 at 18:24 | history | answered | mote | CC BY-SA 2.5 |