General Discussion
In reply to the discussion: Is Buying a House Still the Best Way to Build Wealth? [View all]bhikkhu
(10,707 posts)either way your cash is free to invest. The advantage of renting is mobility, the lack of which trapped a lot of people in the last recession when jobs were elsewhere and the housing market went south.
Maybe I'm old-fashioned in thinking that going 500k into debt just to have a place to live isn't a good choice for most people, especially if the debt is more or less perpetual (interest only). If inflation kicks up, it might wind up being a good choice. If the home value remains stagnant, then you have to earn more on your investment income than you are paying on your loan to get ahead; that's a risky bet either way. I guess I'm risk-averse, and see the least risk in living within my means, however meager that might be. Its hasn't worked out badly for me, though I drive an old car, live in an old house, work hard. Most of my plan is to retire without debt, which should happen. I won't have much of a cash-cushion, but being debt-free should provide options.