Posted by: sajhamitra April 1, 2015
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IPMan,
I have seen that video before and similar videos and logics of Rent Vs Buy and all the time I always question and logically it's incorrect.
Those arguments do not provide any kind of side advantages like Tax benefits. Most importantly, when you rent a house or apartment you are gaining nothing. Buying a house is not equivalent to buying a car where price go down with time. Infact it's opposite as economy progresses. To me renting is nothing more than flushing your money in your toilet because ultimately you don't own anything. Sure you don't have to do anything while renting a house but you are not gaining anything too.
Not to mention, you will be always living on the mercy of landlord. He can evict you from his house at anytime. These days interest rates are so low that it's almost like you are getting free money. Where else can you borrow money with less than 4%?
I have seen that video before and similar videos and logics of Rent Vs Buy and all the time I always question and logically it's incorrect.
Those arguments do not provide any kind of side advantages like Tax benefits. Most importantly, when you rent a house or apartment you are gaining nothing. Buying a house is not equivalent to buying a car where price go down with time. Infact it's opposite as economy progresses. To me renting is nothing more than flushing your money in your toilet because ultimately you don't own anything. Sure you don't have to do anything while renting a house but you are not gaining anything too.
Not to mention, you will be always living on the mercy of landlord. He can evict you from his house at anytime. These days interest rates are so low that it's almost like you are getting free money. Where else can you borrow money with less than 4%?
Also, rent price increase over time as inflation in inevitable. You will be paying more on your renting after 10 years from now than what you are paying now. On contrary to that, Your mortgage does not. There may be minimal increase in your property tax or insurance but it's nothing to compare to increase in renting price.
Last edited: 01-Apr-15 03:56 PM