> Not everyone can just get a half million dollar loan.
You are still optimist, in some part of the world, it is way other one million.
And this is the core of the problem: We are making the poorest even more poor by excluding them of the housing market and making them renters for life.
It can only finish tragically on the long term: constant growing social instability or 2008-style housing crisis. Choose your weapon.
Where I am (NYC), I'd say renting is a smart choice.
Every time I check, I see that buying an apartment (or a house) would make me pay significantly more per month for the best 30-year loan than I pay to rent a comparable place. This is even before the property tax.
I suppose that the future appreciation is priced into the cist of a dwelling. Realty is universally seen as an investment vehicle.
If we for a brief moment imagine that it won't be such a great investment, and maybe would go down when adjusted to inflation, the idea to break your back to own it loses its luster.
I had the same thoughts as you tens years ago. Kept doing the calculations and renting worked out so much cheaper but I struggled into the market and purchased a house after a year of searching and low balling.
What you are missing is:
- They are not creating new land in New York. New York has reached a critical mass and will continue to grow
- Part of your mortgage payment goes towards principle. That's your money.. you are paying yourself back.
- A mortgage is the cheapest interest rate you will ever get
If you can pull it off a house in New York I would say go for it. Apartments can have better locations and can be cheaper but it's riskier. A house with land will not go down if at all for long.
You are still optimist, in some part of the world, it is way other one million.
And this is the core of the problem: We are making the poorest even more poor by excluding them of the housing market and making them renters for life.
It can only finish tragically on the long term: constant growing social instability or 2008-style housing crisis. Choose your weapon.