Comment on Ok, boomer

• misteloct@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

  I have an offer for a family member to pay the entire deposit and I’m still not buying a house. I’m in top percentile income too but I’d rather retire early and meagerly rent than be stuck holding the bag.

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  • ngdev@lemmy.zip ⁨1⁩ ⁨day⁩ ago

    how is owning a home a barrier to early retirement more than paying rent with money you will never see again?

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    • SparroHawc@lemmy.zip ⁨1⁩ ⁨day⁩ ago

      The housing market is in a bubble right now. Buying a house and gaining equity is no guarantee of retirement money.

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      • roscoe@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

        The value of a paid off home is not the equity, that’s just numbers on a paper until you die and your heirs sell. The value is in living for peanuts for the rest of your life.

        My house is paid off. My monthly housing costs are $735 for property tax that can’t increase more than 2% year due to California law. My neighbor two doors down with the same floor plan rents for $6500/month. That difference will only increase for the next 40 (I hope) years until I die.

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    • baltakatei@sopuli.xyz ⁨20⁩ ⁨hours⁩ ago

      Buying a house increases the switching cost of moving to seek new job opportunities. Since we’re no longer in the days of pensions renting makes sense. Imagine buying a home in Detroit before inscrutable politics and macroeconomics caused it to decline; buying a home means you risk holding the bag, especially if you don’t know how to manage risk from climate change in the coming decades.

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    • howrar@lemmy.ca ⁨22⁩ ⁨hours⁩ ago

      Rent often isn’t too far off from the cost of buying. The main financial advantage of buying comes from appreciation, which I would say is a pretty big gamble.

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      • Jyek@sh.itjust.works ⁨15⁩ ⁨hours⁩ ago

        Historically housing as an investment is one of the least risky gambles one can take. They even have a saying, “safe as houses.” People will always need a place to live. Tbh, buying a house is probably safer than government bonds right now.

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