There's a lot of misinformation on this topic floating around. The most common mistake I see is not accounting for opportunity costs properly. This is a recent study done jointly by FAU (where I first heard about it), FIU, and U of Wyoming that addresses the cost topic directly.
"On average, renting and reinvesting wins in terms of wealth creation regardless of property appreciation.
The also addresses the most common argument I see here, that renting is throwing money away:
Still, researchers in the study claim the old adage of "throwing your money away on rent," doesn't hold up.
You are tying up a lot of capital in a house and the ancillary costs are quite high. The math would change depending on the forward supply curve but an increase in supply will also slow price increases.
Submitted November 17, 2017 at 12:44PM by The_Write_Stuff http://ift.tt/2hHL2So
