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A fourth risk: Fed raises interest rates then your monthly mortgage payments cost more than renting and hopefully not more than you can afford.
by louislouis 16y ago
A fourth risk: Fed raises interest rates then your monthly mortgage payments cost more than renting and hopefully not more than you can afford.
- robryan 16y agoAll of this you have essentially no control over and are exposed to for possibly a 30 year period. At least with renting you can look for a better deal after a 12 month contract ends. I'd imagine a lot of people were lured to buy by people telling them house prices would never fall and lost big.
- smiler 16y agoIf interest rates go up and the person who you're renting off has a mortgage on the place and his interest rates go up - your rent will go up.
- yummyfajitas 16y agoThen you move out and rent from someone who isn't charging above-market rates. "Mark to mortgage" == vacancy. If you want to successfully speculate on real estate (as any homeowner does, landlord or occupant), you need to be willing to take losses over long periods of time.