Jimmy- I love you to pieces, but I’m convinced there’s something wrong with your analysis.
Do you include the value of having shelter, ie the “rent”.
Obviously one should purchase wisely- desirable location, etc.
RE has obvious advantages: there’s only so much land, so many good school districts, etc. Home building has not kept up in many places with population growth.
One of the great advantages is leverage. If you buy with 10% down, and the house goes up 10%, you have a 100% profit, usually without a lot of risk.
And tax advantages: a couple is forgiven 500K of profit; an investor can be forgiven millions with a 1031 exchange.
I could go on, but I think you owe it to your readers
What about rising rents? Rents went through the roof here in Maine. Airbnb decimated the long term rental market since shrinking inventory led to higher rents. Then the pandemic brought wealthier out of state folks here, making it harder for locals to successfully bid on a home. So more would-be buyers had to stick with long term rentals, increasing demand. With rents spiraling out of control, are you still confident renting is the more prudent financial move?
Jimmy- I love you to pieces, but I’m convinced there’s something wrong with your analysis.
Do you include the value of having shelter, ie the “rent”.
Obviously one should purchase wisely- desirable location, etc.
RE has obvious advantages: there’s only so much land, so many good school districts, etc. Home building has not kept up in many places with population growth.
One of the great advantages is leverage. If you buy with 10% down, and the house goes up 10%, you have a 100% profit, usually without a lot of risk.
And tax advantages: a couple is forgiven 500K of profit; an investor can be forgiven millions with a 1031 exchange.
I could go on, but I think you owe it to your readers
to give another POV.
What about rising rents? Rents went through the roof here in Maine. Airbnb decimated the long term rental market since shrinking inventory led to higher rents. Then the pandemic brought wealthier out of state folks here, making it harder for locals to successfully bid on a home. So more would-be buyers had to stick with long term rentals, increasing demand. With rents spiraling out of control, are you still confident renting is the more prudent financial move?