UnThreaded | Threaded | Whole Thread (56) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Investing after retirement Date: 7/13/1999 3:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Bob78164 writes,

Finally, intercst presents a third option. Never buy a house at all -- simply rent and invest the difference. That option works well in a rent-controlled environment, where you can enjoy confidence that rent increases will be limited. Nevertheless, as others (I believe including JAFO31) have pointed out, rent will increase, but the mortgage will not. Thus, there is a risk that in time, there will be no difference to invest; in other words, that today's rent will be more expensive than, say, the payment on a 20-year-old mortgage.

Surprisingly, "rent controlled" towns like San Francisco and New York City have very high apartment rents while cities where the free market reigns like Houston and Phoenix have modest rental rates. I suspect that the abundance of buildable land and abscence of any real zoning laws are responsible for the "overbuilding" of apartments in Houston and the resulting low rental rates.

In the case of San Francisco and Manhattan (New York City), the fact that there are few places to build new housing stock keeps rents high.

intercst
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (56) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Implications of the Ballad of Ted Plotz
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement