I'd still have to pay the rent, though. I don't get out of that by putting the money to another use. [eta] Unless it were going to a mortgage. So the question is more, how much could I borrow with what I have left over after I pay the rent and other fixed expenses, isn't it? And the answer is, precious little.

x-posty with Brenda:

Rent is not all the money you spend. Nor are groceries, cable, utilities, or Pina Coladas at the "local".

OK, in your case, it could be clothes, 'cuz you look ... wait for it ... mahvellevous!!

One of my friends is living in an apartment that her mother bought. Rather than paying rent, she pays the mortgage payments each month. It works out to just about what I'd expect to pay in rent for that apartment.

Not sure if this is totally relevant, but it's a data point.

Not sure if this is totally relevant, but it's a data point.

Totally on point. Rent = mortgage. Who gets the equity?

To whomever was asking above, I wasn't induced today. Still pregnant.

ita, debt does not equal house. You can own the thing, with no third party involved. Really.

Well, unless you can pay cash (and we've already established that the vast majority of us cannot) it's more like you can owe the bank or you can owe the former owner. And at least with the bank, you can write off part of it on your taxes, as MFN points out.

As for renting, I'd have to pay roughly the same amount for rent as I would for the mortgage. I have friends who would have to double their mortgage if they were considering renting instead of buying through a bank loan. And I live in the land of stupidly inflated housing prices.

I've been in my house for 6 months-

my house has gone up 120K

40K of that is over what I have put into the house

if I continued paying rent and save the difference - 3500

now, I can't sell my house for anoother 18 months without serious tax consequences. and who knows what the margin will be. But you never have to pay for a house to make a profit.

Now this doesn't mean I wouldn't pay cash for a house if I could. Or want to pay this house off as easrly as possible. But I think it is a sound use of credit.

there are other debts I regret.

another fun thing about owning a house. the question of buying vs. saving is easier. saving wins a lot more often.

Rent = mortgage. Who gets the equity?

Um, the person paying the mortgage. How does that support your argument?

But you never have to pay for a house to make a profit.

Examining this statement from different directions...

Ok, I have nothing. What the fuck does this mean?

What the fuck does this mean?

I was starting to wonder the same thing about the whole conversation.

I have to admit I'm lost myself, amych. I think Gus's point is to buy cash -- I'm not sure if it's about waiting until you've saved the money up (and I haven't run the numbers for interest paid vs. rent paid), or there's some way to make the money more quickly than you'd have a mortgage for.

I'm surely lost.