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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Do you forever renters worry at all about the future? I can't imagine going into retireent without a paid roof over my head. You think rents are high now - what do you think they will be in a few decades?[/quote]

You'll have a paid off house, the renters will have invested the difference between mortgage and rent in vehicles other than equity.  [/quote]

That is if they are good and serious about investing.  Truth is, most people are not.  Especially, when it comes to stock markets.  People talk and talk about investing, but most have money in low interest paying accounts, 401K, some mutual funds if that.  Many financial investment vehicles also have fees and commissions, which can be quite high and returns are not guaranteed.  If you are good at investing, and growing money without touching RE and are disciplined to put money away instead of wasting it, all the power to you, but for many people, unfortunately, owning their home at the end is the only way they get any cash or equity in the old age.  Even if numbers don't add up, given interest you pay off during the lifetime of your mortgage, lost opportunity to invest the difference between higher mortgage+expenses and lower rent, etc, you do end up having something, that at least would have kept up with inflation.   It's just a way to discipline some people into putting money into something every single month.  Many people are just spenders, and that difference between mortgage+RE expenses and rent would just end up going into frivolous expenses.

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