re: Millennials being squeezed out of middle class, says OECD

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And the interest on your mortgage, your property taxes, homeowners insurance, routine home maintenance, and major home repairs?

Lot of people get themselves into financial trouble buying into the line that "owning a home is like paying yourself rent instead of throwing it away to a landlord; it's a no brainer!"

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Yes, I fully understand this. I rented until I purchased my first home at age 38 for those very reasons.

You need to go back and read his argument, and why I'm pointing out how stupid it is instead of having a knee-jerk reaction to the topic.

can't argue math with people like that dude

some boomer said buy a home and they obliged

His point was that your rent is a flat cost. That isn't the same with a mortgage.

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all we need is for perfect to admit to being a bernie bro and saying "just lol" after every reddit bullet point

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no way perfect has the chiseled features and redpill research to pull it off

peak rocket was when i mentioned thinking i had lower T and he confirmed it based on his observations of my posting

what a legend. we need a podcast panel of pecker, goldennugget, and rocket discussing life and how to be a male in 2019. maybe you could moderate.

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You are paying all of that for your landlord. He isn't just eating the cost out of the goodness of his heart.

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I'm aware. He also isn't eating lawn care, pool maintenance, my water bill, trash pick up, etc. My point is all of that is included in the rent I pay. Let's call my rent X.

When people talk about their mortgage, they pretend as though their payment is the equivalent of X, and therefore, it makes more sense to buy than rent. But the reality is that the principle payment every month is really Y, not X. Everything else, from interest to averaged in closing costs to taxes to maintenance to repairs, etc, is X. X is the sunk costs for both of us.

So, the question is whether your home will appreciate faster than what I would make by taking the equivalent of Y (which is what I'm "saving" by renting, and what you are "paying to yourself" in a mortgage) and investing it elsewhere.

And that's not to say that renting is always the winner in that scenario, because it isn't. But I frequently speak with financially illiterate "homeowners" (who have actually never possessed a clear deed in their lives) who nearly have a fit at the idea of home ownership not being a no brainer for everyone in every city ever.

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Everything else, from interest to averaged in closing costs to taxes to maintenance to repairs, etc, is Y.

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You are assuming that renting is cheaper than buying here which isn't always the case.

The owner of rental properties figures in his taxes, interest on the mortgage (if one exists), maintenance and repairs into what he charges for rent. I help my dad manage 3 of his rental houses when he's out of state and he absolutely does this.

Some years maintenance and repairs will exceed what he estimated, other years it will be less.

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So, the question is whether your home will appreciate faster than what I would make by taking the equivalent of Y (which is what I'm "saving" by renting, and what you are "paying to yourself" in a mortgage) and investing it elsewhere.

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I get all of this. But realistically, how much money are we talking?

My mortgage is building equity minus interest. Rent is completely flushed. I seriously doubt what you're saving in renting is going to be more than the equity you're building through your principal. Well unless you have some outrageous interest rate and property taxes.