Wise Bread | Personal Finance and Frugal Living Forums

You are forgetting a key thing which is the inflation rates. Inflation and the values of homes affects the prices of rent.. so you cannot just calculate the rent today multiplied by 20 or 40 years, you have to take into account the average 5% inflation rate... on the contrary when you buy a house your mortgage (unless refinanced) is going to be the same regardless of the value of the house and the inflation rates.

Thus, real estate ownership is an obviously wise investment. Sure there are some drops in values in some areas but in general values of homes go up and you just have to find the right cities to invest, such as growing economies like Phoenix and North Carolina where more and more businesses are moving.

Reply

Please keep the comments civil and on-topic. Abusive or inappropriate comments will be removed without warning. By posting here you agree to our terms of use.

Your name:

E-mail:

The content of this field is kept private and will not be shown publicly.

Homepage:

If you leave a link (include the http:// part), your name will be linked to your homepage.

Subject:

Comment: *

You may use some HTML for formatting: <strong>bold text</strong>, <em>italics</em>, and <a href="">for links</a>. Empty lines are automatically converted to paragraph breaks.

Or click the link above that says 'enable rich-text' to use the fancy editor.

Captcha

This question is for testing whether you are a human visitor and to prevent automated spam submissions.

Math Question: * 5 + 8 =

Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Have more to say? Join the discussions at Wise Bread's Finance and Frugality Forums.