Quote:
Originally Posted by photon
Are you further ahead though?
Lots of people make good money but still rent; the money they save renting vs. owning they invest.
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While this is a good theory, it doesn't work as well in practice due to a natural lack of self discipline. Paying the mortgage (including the principal payments) is a top priority because if you don't the bank takes your house (==debt). Those principal payments are forced savings.
But renting and investing the difference doesn't work that way. Sure, the rent gets paid (eviction still has you homeless if you don't pay your rent) but the savings part can become discretionary. (I need that vacation/new car/designer clothes/designer coffee, etc).
So 30 years later the renter hasn't saved as much as the "forced savings" of the homeowner, because they took a few months off here and there.