5 ms·
Even if the house is worth less, the morgage is eventually paid off. Rent has to be paid forever. I can't even imagine renting when I'm retired and have less m
by mono442 1mo ago
Even if the house is worth less, the morgage is eventually paid off. Rent has to be paid forever.
I can't even imagine renting when I'm retired and have less money.
- rootsudo 1mo agoI can, rent in cheap cost of living location. Why pay 600k+ usd to purchase in m-hcol when instead can live abroad during retirement and pay 1k/month and use the remaining for better living or health care or whatnot?
- bluGill 1mo agoI can sell my house when I'm retired if I choose to do that. I can only save so much money in retirement plans. A house (in the US - other countries have different rules!) is my next best retirement investment because I can live there rent-free after I retire, or I can sell it for more cash. If you are not maxing out your retirement accounts then the house may be a worse investment than adding more to your retirement accounts.
- preg_match 1mo agoRealistically mortgages are also forever - very, very few people actually outright own their homes. Because when you sell, which you might be forced to do due to a new job, divorce, etc, you enter another mortgage. Also homes are a bad bad retirement plan. If you're debating paying off your mortgage early, or investing said money in a 401k, 401k is almost always the correct choice, in just about every market. Debt is not a bad thing. Often having more debt means having more cash flow, which means greater investments. That's why companies don't outright buy their real estate, either.