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Subject:  Re: Home Ownership not a good investment Date:  4/24/2014  2:09 AM
Author:  ptheland Number:  74816 of 99760

At retirement the homeowner will sell and add his net to his savings.

What was your assumption about the value of the house at sale?

Selling the house at retirement means that most of the time there would have been a mortgage payment for the homeowner. What happens if you continue the mental exercise for 10 or 20 years of retirement? The renter would need to draw from their savings to continue to pay for housing, while the homeowner would only need to draw smaller amounts for taxes, insurance and maintenance. At some point, those larger payments will catch up to the renting twin, I just don't know how long that would take.

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