Quote:
Originally Posted by 86-75309
Over the years I've netted some profit on real estate transactions. I've also lost money. These are for my primary residence. I'd never try to use real estate as an investment tool, expecting meaningful gains on a regular basis. I consider owning a home as being better than the alternative of renting. After paying for principal, interest, taxes, insurance, utilities and maintenance at least I have substantial equity in my house. If I had rented something comparable all these years I'd just have a stack of rent receipts.
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Renting hasn't matched the growth of buying, so it can be a good way to build wealth by saving money on the cost of living and investing the difference. If the minimum home in a market like mine is $400k+, but renting an apartment can be as low as $1,500 then renting and investing $1,000 per month, might be better than paying $2,500+ for the same apartment. At least, it can in the beginning. Over time, the rent will rise, but we know that compound interest over time will favor heavy investments at the beginning over new additions at the end, so it could work out to be the better way of generating wealth, or more specifically, renting shouldn't just leave you with a stack of rent receipts if you invested. At least, this is true in most markets, as the graphs and discussing below point out.
https://www.ft86club.com/forums/show...5&postcount=19
https://www.ft86club.com/forums/show...2&postcount=36