Property ownership is the clearest path for generational wealth. It may suck to own, but you are building an asset and you can hand it off to future generations to have a head start with.

It's a broken system, I am not advocating for it as a good system, but it's the primary reason to own a home.

[–] eager_eagle@lemmy.world 5 points 6 months ago* (last edited 6 months ago) (2 children)

the thing is - there's a lot of variables that shift the balance towards renting when looking within a time frame, even from a financial perspective.

how long you can stay in one place and whether that fits your needs both today and in a few decades
% of down payment and missed earnings if this money went towards another investment
interest rates
property taxes
HOA fees, if any
likely higher insurance rates over renting
maintenance costs

In the end of the day, since many variables have a large uncertainty, that's a bit of a gamble. Home ownership tends to win over time, but the longer one looks into the future, the higher this uncertainty also is.

[–] Saik0Shinigami@lemmy.saik0.com 5 points 6 months ago (2 children)

Finally sane people! Holy shit you're like a unicorn.

There are DEFINITELY cases where many people are CHOOSING to rent because they simply DON'T want to own. That's perfectly okay. Both options have pros and cons.

Shitty landlords do exist... But homeownership has a boatload of issues that come with it too that you simply cannot shop around for.

I've owned my own house for the past 5 years. I'm in a position where it makes sense. Before that? Well over a decade of renting. And it wouldn't have made sense any other way.

The lack of nuance in opinion otherwise is maddening.

[–] TubularTittyFrog@lemmy.world 2 points 6 months ago* (last edited 6 months ago)

agreed.

vast majority of folks in the USA see renting as this repulsive awful stupid thing that nobody would ever do if they weren't poor.

it's nuts. renting makes a lot more sense for a lot of situations. and vast majority don't buy until they are married and having families anyway.

[–] eager_eagle@lemmy.world 1 points 6 months ago* (last edited 6 months ago)

this really annoys me too

judging by the comments there's a lot of people thinking "my mortgage is $ X renting this would be $ Y. $Y > $X, therefore owning is better."

Add all those costs above, then one can think of comparing both. Also, the property I'd buy is not the same I'd rent at all - these two have very different requirements IMO. One is for a few years and the other is meant for a few decades. I can get a much better location around where I live because I'm renting and it's still very affordable.

[–] blackstampede@sh.itjust.works 0 points 6 months ago (2 children)

You're missing a few advantages to owning-

If you have to move, you can often get the money that you spent on the mortgage back, or even make a profit.
A mortgage is generally cheaper than rent.
While some may not be interested in renovating, it's a relatively low-effort activity that pays for itself if you sell the property.
Can have a garden

[–] eager_eagle@lemmy.world 2 points 6 months ago

I'm missing all advantages of owning (or renting), that was not the intent.

[–] TubularTittyFrog@lemmy.world 1 points 6 months ago* (last edited 6 months ago) (1 children)

you can rent and have a garden and rent is cheaper than a mortgage in a comparable area.

when people buy they often have to move further out to a cheaper area to get a mortgage

my mortgage is more than my rent and isn't as nearly in as nice of a place and convent of a location. on top of that and having to do home reapir (not renovation) i have less disposible income than I did a few years ago.

it's trade offs. i miss being in a more social area and having more disposible income, and somtimes i regret buying.

[–] blackstampede@sh.itjust.works 1 points 6 months ago

Ah yeah, not the case in my area. Rent for an apartment is about twice as much as a mortgage.

[–] dingus@lemmy.world 1 points 6 months ago (1 children)

What if you're not going to have a next generation? Is there still a good reason to own?

[–] Phegan@lemmy.world 1 points 6 months ago

It's still the most effective way to accumulate wealth within a single generation, so it can be an asset to use for retirement.

Again, not advocating for the system, I think property ownership is problematic, but I am explaining why it can be beneficial within the current system