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Don't treat a house like an investment. They're great places to live but terrible investments. Upkeep on a house costs money too, just like rent, so whereas your landlord is required to keep up a rented dwelling you have to do it yourself if you own it. Buying is very often much more expensive than renting as a result. As a financial asset, houses are awful because they're highly illiquid (among other reasons). The best that I can say for them is they're very tax-efficient because of the mortgage interest deduction. The market forces the price of renting versus buying to be very similar when you take risk into account. When you rent, the landlord assumes all of the risk. When you buy, you assume all of the risk. If you make $12 an hour, it is very likely that you can't afford that kind of risk.
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Apr 13, 2014 00:30
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| # ¿ May 22, 2024 13:22 |
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