No. of 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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.