Reply to Question for renters..Aren't you tired of paying someone's mortgage?

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[quote=Anonymous]But what happens over time? If you rent somewhere for $2000 and you could buy for $2500 on a fixed rate mortgage, and rents go up by 4% a year! you are no longer investing the "excess" after 6-7 years because there is no more "excess". Your rent is now more than the fixed rate mortgage. Now it's the homeowner who is investing all the extra money they have, that increases every year, as rents rise and a fixed rate mortgage stays the same. In 20 years you're paying $4000+ for that same property while the homeowner is paying $3000 or less even with property tax increases, and is looking forward to having it paid off in ten years, at which point you'd pay probably $6000 while the homeowners pays just property taxes and insurance and has a valuable asset to boot.

Perma-renters always seem to look at a snapshot in time, or at most a 2-3 year horizon. They compare a $2000 rent NOW to a $2500 mortgage NOW and think it's a good idea to rent. In five years that same property will require a mortgage of $3000 while their rent is $2400 so renting will be a good idea THEN. In 15 years the same property will require a mortgage of $4200 while they can rent for $3700, so renting will be a good idea then as well.

Then after 20 years of renting they'll accuse people who have tons of equity in their houses of being "lucky" to have bought before a price run up or two. Uhhhh no.

I'm more than happy to live in a house I love, even if it costs a little more now, knowing that I am cheapening my living costs over time with inflation, while rent increases in urban areas generall run a point above inflation, so renting gets more expensive all the time.[/quote]

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