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Comment on Congrats to all 2024 college graduates!

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.

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eager_eagle@lemmy.world ⁨7⁩ ⁨months⁩ ago
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
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- blackstampede@sh.itjust.works ⁨7⁩ ⁨months⁩ ago
  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
  
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  - TubularTittyFrog@lemmy.world ⁨7⁩ ⁨months⁩ ago
    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
    
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    blackstampede@sh.itjust.works ⁨7⁩ ⁨months⁩ ago
    Ah yeah, not the case in my area. Rent for an apartment is about twice as much as a mortgage.
    
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  - eager_eagle@lemmy.world ⁨7⁩ ⁨months⁩ ago
    I’m missing all advantages of owning (or renting), that was not the intent.
    
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dingus@lemmy.world ⁨7⁩ ⁨months⁩ ago
What if you’re not going to have a next generation? Is there still a good reason to own?

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- Phegan@lemmy.world ⁨7⁩ ⁨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
  
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