Every day, thousands of folks do emerge from that tunnel and gain the ability to make profound statements like "Well, at least the house is paid for."
This is in stark contrast to renting, wherein: There is absolute certainty that none of the money spent towards having a place to live will ever be returned. It doesn't matter how much is spent: Whether a little, a lot, or a lot more, that money is always just unilaterally gone. There's no chance at all of anything else happening. The odds of winning are nonexistent. There is no light at the end of the tunnel, and there never can be -- it's just inescapable darkness in there.
If you include opportunity cost into the decision, then your contrast can and often will disappear (i.e. renting is financially superior or "winning" in your terminology).
Also, is this an AI comment? Because it's surely poetic about something that doesn't call for it.
When I find these kinds of phrases to be directed my way, it is my most charitable interpretation that it is impossible for anything to be gained from the conversation.
Thanks for bringing this up! We're done here.
So your landlord was renting your apartment to you at a loss?
But it's also probable that the loan is fixed at a lower rate than you can get now, the maintenance costs less if you put a few people on salary vs hiring them for one off repairs, and the utility bills are lower because it's a smaller space.
As a general rule of thumb, the break-even comes out to be about seven years. It can be as bad as 15 years if you get unlucky and when you buy it what the economy does, but by 30 years it is almost guaranteed you are overall money head buying a house.
Although I do have to point out that I did not consider other investment options. If you take an apartment for cheap rent and then invest the difference between what a house payment would be including all that insurance and taxes versus your apartment and apartment insurance (less buy important) - and invest the difference in stocks, that is going to change your financial situation. All those equal that expect to be equal over in the long run. Since by investing, you are investing less money. However, just to make things tricky, in the U.S., we can invest up to a certain maximum in a 401k or IRA, both of which are going to be much better because of taxes, but it doesn't matter if you have an apartment or you have a house, you're at the same maximum. And so someone with a house can get that advantage of that and their future rent is paid for while someone with an apartment is still going to be pay for that apartment all their life.
There's a few other assumptions above. I'm assuming you're relatively young and you're going to live a relatively long life in the same area. Moving houses that's going to change things, apartments are much easier to move. Be the umlucky person who dies young: you won't get to take advantage of either investment.
Overall apartments and houses can both be good things and you need to examine the situation for your own life. Life includes your future, which is of course unknown. Good luck.
Anyone who claims there is a universal answer for everyone is categorically, utterly wrong.