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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Two things are missing from this discussion-- MID and the fact that although you may only make a little money on a house you buy (100,00 to 112,000 in the PP example) you have lived "for free" for 25 years in this scenario. Renting for 25 years at $2000 would be $600,000. The mortgage payment is being invested in the house and you end up with something in the end. Also the mortgage interest deduction lowers your taxable income.[/quote]

You don't live for free when buying. You have to compare what you spent on interest (after the tax break) against rent. I agree that people tend to buy a nicer place than they would rent. Its possible you end up spending nearly equal amounts in the end but have nicer lodgings from buying. [/quote]

Owners also get the benefit of increased equity. In the case of Capitol Hill, many people have tripled or quadrupled their equity in a decade.[/quote]

Isn't that basically saying home values will continue going up?[/quote]

On a related note, increasing your equity doesn't do you much good until you actually sell the home or you leverage the equity to do something with it.  Price can go down thouh.[/quote]

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