Skip to main content
No. of Recommendations: 3
This is all very theoretical and academic, as no two people would ever live this way....but it was a kind of fun exercise. But it did show the affect of the large costs of buying and selling...which sometimes gets overlooked when comparing just the monthly costs of buying vs renting.

No offense meant, but that was probably what you chose to see. I think these exercises are best used to understand the sensitivity of the various estimates and projections. Offhand, I'd guess that you needed to estimate the future inflation in rents, the future inflation of housing prices (and taxes and insurance and maintenance), investment returns, mortgage interest rates, and probably a couple of other things.

I don't believe these artificial comparisons are very good for drawing conclusions. Instead they're great for figuring out the important variables and the unimportant variables. If the important variables are ones under your control, then your future is in your own hands. However if the important variables are ones you can't control, then you need to figure out how to make your decisions given the uncertainty presented by those variables.

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!
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.
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.