No. of Recommendations: 12
In grad school (MS Finance) we did a comparison of twins: one a lifetime home owner and one a lifetime renter. Their lives were identical except their housing. Their agreement was to compare their total costs of housing at the end of each month and the one who paid less would invest the difference in an S&P 500 index fund. At retirement the homeowner will sell and add his net to his savings. The results are not even close....the renter had accumulated almost twice the savings due mostly to large cash payments for down payments and closing costs by the home owning twin in the early years.

IMHO home ownership should be about life style and affordability...not about investing.

BruceM
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