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Precisely. Rent everything, screw the ownership obsession<3 (...and you'll be happy)
Rent is greater than monthly mortgage payments, so I’d rather have the lower recurring outlays.
not when you average out maintenace/repair expenses, I don't think
Some landlords are cheap and won't maintain the property. Then as the tenant you're put in a tough spot of either paying to repair someone else's capital, or paying the cost of living with the problems
don't you think that's, at least a little bit, what you're shopping for when you're DECIDING as a tenant where to rent? (Fair enough, rent-control and the quality of the entire rentable housing stock down, but OK)
It is part of the calculation but how much market pressure actually exists there?
As an owner, you face the entire cost and benefit of each situation. That should lead to better individual outcomes. The cost is in having to make all those decisions.
veeery circular eh, since now we're back to the efficient cost of decision-making, what to outsource and what not!
It depends and this is the main part of my point; I have more say in those maintenance and repair expenses as the owner.
The fixed monthly payment is lower and I get to decide which additional expenses are worthwhile and when they’re worthwhile. That flexibility gets lost in averages.
That flexibility gets lost in averages.
in general an important observation
Ok, Klaus
I've owned homes for the last ~30 years. No plans to sell now (kids are still in school), but when the youngest moves out we are debating whether to buy or rent for our downsizing.....
Homes are generally really bad assets. Yes, they go up in value*, but the constant upkeep becomes increasingly burdensome.
In 2024 had to replace main A/C unit and water heater (both were at their engineered 10 yr failure point). That was about $15K in total expenses....
Holding the cash, earning a dividend, and dedicating the proceeds to rent does simplify things.
- = thing about homes rising in value is its highly dependent on location. If I could redo things I would've skipped my first "starter home" I owned it for about 12 years and basically sold it for what I paid for it more or less....current home was much more expensive but in a highly desirable area and has earning 5% per year for last decade.
Yeah there's a bunch of that location-dependent thing. Hopeless
My pal, balls-deep into property ownership and investing, recently told me plenty of apartments in London — hottest property market there is, aight, can't go wrong — are selling for less now than 5-10 years ago.
Change in buyers' taste and market structure/macro etc can just rug you. You thought you were just parking cash in a real-return guaranteed asset and you end up having a part-time job repairing things and forecasting the local labor market.
The thing about all those expenses of ownership is that you still get to make the decisions about how much to spend. That’s important.
When you rent, you’re paying upfront for an unknown amount and quality of service plus the moral hazard that comes with renting.
Lately, I’ve been thinking about the value of minimal financial obligations.
The fewer things you’re on the hook for, the more freedom you have in how to spend your time.