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0 pointsfizzbuzz1236y ago0 comments

So the Tax advantages and building equity are worthless and play no part in peoples desire to buy instead of rent. Ok

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you should search what "opportunity cost" means. The market is highly inflated compared to other investments because people are blindly buying without thinking at almost any stupid price. Your comment is a perfect example of that.

malvosenior6y ago

You can leverage your money much better with a mortgage though. You just need a small down payment, but you get the upside (and downside) on the entire value of the home.

I'd also argue that most other assets are also highly inflated. The P/E on most tech stocks for instance looks a lot scarier than the overall real estate market. I'll add that people have been saying the Bay Area housing bubble will pop for over 30 years. It hasn't yet.

warp_factor6y ago

This is a bet on the future price of the home. And a lot of simulations have shown that you will come ahead in stocks unless you are in an exceptional growing market and not moving for at least 5 years.

There is a huge lobby in society to convince you that owning a home is the way to go (banks, real estate agent, other homeowners and people repeating this nonsense all the time). Don't let this fool you and make the calculations before buying anything.

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warp_factor6y ago

malvosenior6y ago

You can leverage your money much better with a mortgage though. You just need a small down payment, but you get the upside (and downside) on the entire value of the home.

warp_factor6y ago

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