Everyone is praising owning over renting, but let’s look at the actual math. After factoring in maintenance fees, property taxes, interest payments, and historically lower real estate growth rates, wouldn't it often be smarter to rent and invest the difference? I get that if you own real estate, you can leverage it to buy multiple properties. But most people don't pursue that path, they just buy one primary residence and stay put. Moreover, looking at long-term data in Canada: Housing: Last 50 years averages a compound annual growth rate of roughly 5.5%. S&P 500 : Last 50 years 10%–11% annualized. Am I missing something? If you don't plan on building a multi-property real estate portfolio, doesn't a traditional mortgage lose out when you can just invest the spread between renting and owning straight into a global index fund?
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Jay @motivated_jay · 22h
Diversify. There is no need to debate about this. If you can't do both, then boss up and stop wasting time arguing with others online.. Most people buy wrong and don't know how to buy correctly, which is why the math don't make sense.
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