SPY

[Adam D. Ruppe]

On Thursday, 13 June 2013 at 23:19:03 UTC, Walter Bright wrote:
> Again, we were talking about the financial pros and cons of 
> buying a house vs renting. The utility issue is therefore moot.

The utility though is mathematically equivalent to the house 
cutting you a check each year for the difference of property 
taxes, insurance, and repairs and rent though. Which is virtually 
guaranteed to be a positive number because the landlord has to 
pay all that too, and presumably wants to turn a profit on top of 
it.

It is fair to balance that against the downsides of mortgage 
interest and equity loss, but even if we assume 100% of the 
principle is just flushed down the toilet, it is quite possible 
for the utility to still be worth it in dollar terms, especially 
over 30 or more years of living in the house.

Maybe not as big a gain as stocks or whatever, but also very low 
risk. Even safe stocks can dip right when you want to use it - 
imagine wanting to retire in 1930 - but you'll still be able to 
live in your house (and if it burns down, at least you have 
insurance so that isn't a total loss either).