Re: Buying vs renting
"J. Andrew Rogers" <[email protected]>
| Newsgroups | gmane.culture.people.rohit-khare |
|---|---|
| Message-ID | <[email protected]> |
> On Feb 27, 2018, at 3:03 PM, Marty Halvorson <[email protected]> wrote: > > Despite Tom's excellent thoughts on the subject, my observation is this: All the money spent renting is benefiting only the owner of the rental unit. Presumably you get use of the unit you are renting. The common fallacy of renting as “throwing away money” is predicated on the renter and the owner having an identical cost basis for the same place. This assumption is rarely true. Renting is often a way to split the difference between your cost basis to buy and the owner’s lower cost basis. In such cases, there is literally no way for you to come out ahead by buying the same place no matter how you try to explain the numbers unless you are loaded with cash (which is probably a bad investment of said cash). And this is the case more often than not in the US. I find the arguments that some people gain emotional or psychological benefits from buying more compelling than arguments for financial benefits. Of course, the calculus is a bit different if you plan on living in the place you buy for the rest of your life. Admittedly, I have not gotten to the “last place I am going to live” stage yet. _______________________________________________ FoRK mailing list http://xent.com/mailman/listinfo/fork