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Originally Posted by the indigo
That's the key point most people in this thread ignore. Deposit, Cashdown, Initial Investment... that's the only reference that should be used. Leverage is done by the bank.
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I don't think you understand what leverage is. When you buy a home with a loan it's a leveraged investment. That doesn't mean the bank 'does' leverage.
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The thing that you seem to be missing is that even if real estate never appreciated...let's say prices and wages were frozen today and would never change again for the rest of our lives....you're still better off buying because when you retire you can live rent free, because your house is paid for.
Having a paid for house is the only reason most people are even able to quit working when they're old. A renter will always have that expense.
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If you're just going to make up imaginary scenarios we might as well discuss the local dragon population's effect on practical real estate.
Freezing prices and wages (inflation) is chosing to disgregard one of the fundamental blocks of the rent vs own debate.
You admitted yourself that it ultimatly breaks down to a region by region analysis and there is no universal 'right' answer which is all I said in the first place. What exactly are you arguing now?
The irony of course being that I was just pointing out your analysis was over simplistic and your response was to simplify it even more to defend a point you'd already conceded lol