Quote:
Originally Posted by blankall
Maintenance costs are typically offset by the actual increase in value in the house.
Even if the costs of maintaining a house vs. rent even out for the first 10 years, that isn't true of the first 20 years...or what about after that when you get to live rent free? Home ownership in the long run has proven to be a very effective way of building wealth in North America.
Also, typically the gap between rent and a mortgage payment is not all that high.
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Sure. But the value of capital also increases over time. 100k down payment on a house is money available for other investing. So of course it depends what you're capable of in investing and what your luck is in real estate.
Most importantly.... past performance is not indicative of future returns. I would not be so keen on booking my twenty year real estate return right now.
Once your mortgage is paid off you are certainly not living rent free. Ex mortgage costs your living expenses are anywhere from 50% to 90% of a comparable rent. But even then, you're not living capital free. The 700k you have tied up in your house is worth about $3500 a month to an average investor. It would sadden me to live in a paid off house.