> This argument only makes sense if the (monthly) rent payments are more than mortgage payments + maintenance costs.
> In most cases, that's not true.
In most cases, that's not true initially.
Over time, rents rise substantially but mortgages are fixed and can go lower by refinancing.
When I bought a house, the monthly cost was a bit over 200% of my rent at the time (of a roughly similar-sized rental unit). Yes it was painful in that first year.
It only took ~3 years for the rents in the area to become similar to my then already lowered mortgage via refinance.
Fast forward a couple decades and my housing costs are ~20% of rental rates in the area.
By the time I retire the mortgage will be long gone. It is heartbreaking to watch older people on fixed income having to deal with ever-rising rents.
> mortgages are fixed and can go lower by refinancing.
This varies by country. In my corner of the EU, morgages are flexible rate (following an index such as EURIBOR), sometimes with a 5-year fixed rate option (for a premium).
> In most cases, that's not true.
In most cases, that's not true initially.
Over time, rents rise substantially but mortgages are fixed and can go lower by refinancing.
When I bought a house, the monthly cost was a bit over 200% of my rent at the time (of a roughly similar-sized rental unit). Yes it was painful in that first year.
It only took ~3 years for the rents in the area to become similar to my then already lowered mortgage via refinance.
Fast forward a couple decades and my housing costs are ~20% of rental rates in the area.
By the time I retire the mortgage will be long gone. It is heartbreaking to watch older people on fixed income having to deal with ever-rising rents.