I don’t think this is a particularly fair take. Some people bought at high prices because it seemed like the right move (in 2008, for example), market crashes, you’re stuck with your investment even if you’re underwater (upside down).
It’s definitely not fair to assume what his costs are compared to the cost to rent. It isn’t necessary to have the example above to reside in an area where mortgages far exceed rent. Northern Virginia in the USA is a good example, where townhomes can easily exceed 1 million USD, which would typically require a 30-50k+ down payment plus closing costs, and would then be 5k+ in a mortgage. Rent that place for 4500 and that’s a loss on monthly costs, but of course the landlord is earning long term equity (and that is the value, but they may not be turning a profit).
Edit: I’m simply stating that it’s unfair to assume the original commenter is lying about not making a profit. I’m not suggesting they aren’t experiencing a net gain in equity.
I don’t think this is a particularly fair take. Some people bought at high prices because it seemed like the right move (in 2008, for example), market crashes, you’re stuck with your investment even if you’re underwater (upside down).
It’s definitely not fair to assume what his costs are compared to the cost to rent. It isn’t necessary to have the example above to reside in an area where mortgages far exceed rent. Northern Virginia in the USA is a good example, where townhomes can easily exceed 1 million USD, which would typically require a 30-50k+ down payment plus closing costs, and would then be 5k+ in a mortgage. Rent that place for 4500 and that’s a loss on monthly costs, but of course the landlord is earning long term equity (and that is the value, but they may not be turning a profit).
Edit: I’m simply stating that it’s unfair to assume the original commenter is lying about not making a profit. I’m not suggesting they aren’t experiencing a net gain in equity.