angrymoppet t1_j2ufxnc wrote
Reply to comment by Velkyn01 in Home price increases weakened sharply in November, posting the smallest annual gain in 2 years -CNBC by wander9077
Because it's true. After years on the renting treadmill I was lucky enough to be able to stay with family for awhile with my girlfriend to save the money to put down on a home. Every month that we pay our mortgage it's money going into an investment that we can later sell or own outright. You pay an obscene premium to rent and get no such long term security from it. It's money straight down the toilet. It used to be worth it to rent because the price gouging wasn't so bad that you couldn't set aside money while renting to save up for a home. That's no longer the case for most people, unfortunately.
ItsCalledDayTwa t1_j2wfoos wrote
It really and truly depends where you live. In the city of Munich for example the cost of home ownership is so high the break even point is like 50 years out. Rental yields here are the lowest in Europe.
Velkyn01 t1_j2uguq7 wrote
Just because your money isn't going toward equity doesn't mean that it's wasted. You spend money on a good, like shelter, and you get that shelter for x time. Food isn't a waste of money because you're hungry later. Neither is shelter. It's not suddenly a waste just because you can't use the money for shelter and as an investment vehicle.
amlight t1_j2ui9fr wrote
And you are also at the mercy of the landlord. We are finding rent prices continuing in increasing exponentially while wages are not keeping up. So not only are people unable to buy a home to live/use as a financial asset (which is important for long term security), they they are also struggling to even make rent payments. Sure people can rent for life and have other assets, but it’s not likely to be viable for much longer if we don’t set boundaries on rent costs. You also have to potentially deal with slum lords. Don’t even get me started on those.
angrymoppet t1_j2uidab wrote
It's a waste because that rental will always be at a premium over an equivalent mortgage. The mortgage payment I'm making today -- which is considerably less than that shithole apartment I was referring to -- will be the same mortgage payment in the year 2045, by which point I presume that same apartment will cost multiple times what it costs today. I've spent a considerable amount of time looking at both apartments and homes in a 40 mile radius from where I am. There are no apartments that are charging a "fair" price for what is being offered. The money is being vacuumed up by greedy corporate fucks intent on breaking the back of the working class to keep them in perpetual servitude. The funds spent on that rental premium is cash you can't divert to your own financial independence and security. Make no mistake, the money is a waste. It's a necessary waste for the millions who have no other option, but every second you're not calling it what it is provides unnecessary cover for the super rich to continue applying their boot heel to your neck.
ItsCalledDayTwa t1_j2wfu59 wrote
"always" - not always. It depends on the ratio of the rental market to the cost of purchasing.
[deleted] t1_j2uhzyf wrote
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