Please check your assumptions:
Originally Posted by Diapositivo
1) mortgage interest now stands at around 3.67% (national average for 30 year fixed) here in the US.
2) just as there are no guarantees that real estate values increase, so to, there is no reason to expect investment values to increase.
3) you've completely ignored the tax advantages to owning a home - which are substantial here in the US.
4) "safe investments" no longer pay any significant interest....the interest rate paid on certificates of deposit, for example, is now well below 1%
5) rent invariably goes up. One has total control over his mortgage payment...which stays fixed over the term of the loan and can go down if one refinances.
In summary, Stone is correct...buying a home is much preferred here in the US - especially now, and especially if you are smart enough to buy in a region of the country that has and will continue to have strong employment.
Last edited by BradS; 01-04-2013 at 01:01 PM. Click to view previous post history.