Josh Wrote: ------------------------------------------------------- > > mmmm....but you rent for ever where as a > mortgage > > is normally done in 25 years...so no more > payments > > and you won an asset. > > > > Also, calculations of rent vs mortgage are > short > > term so tend to ignore: > > > > 1) increase in asset vale > > > > 2) inflation > > > > > > Ask someone what the rent was on say a 2 > bedroom > > house in East Dulwich in SE22 was 24 years ago > and > > what interest payments where for someone who got > a > > 100% mortgage on a 2 bedroom property 24 years > > ago...then compare what the latter is paying > > against the renter now! > > > Of course buying 24 yeas ago looks much better > than renting for the last 24 years, but the sums > don't stack up quite so favourably at the moment. > When house prices are falling it always makes > sense to rent rather than buy. er, I'm not talking micro-periods,this is a long term argument - house prices have fallen significantly now twice in that 24 year period and yet the basic sums will still be well in favour of the buyer...most of us hope to be around for more than 25 years of adulthood! As it happens, 24 years ago was not actually a great time to buy just before the crash on the late 1980s. If you'd boght 19 years ago for instance you'd be really laughning - but that's not the point, the point is that in the long term it makes sense. As I've said before, my house is my home not an investment portfolio but if you operate within a reasonable timespan of 25 years (or even 30 years if you increase your mortgage to Sean's point) of mortgage paying you end up with some equity (incase you need it )and no 'mortgage' payments, you pay rent for until you die