[AneroidOcean]

(08-31-2016 04:23 PM)Lagavulin Wrote:  

@ AneroidOcean - you make some valid points, the most valid in my opinion being the interest paid on the loan. However it seems to me as if your view is negative as it focuses on worst case scenarios. I fail to see how renting a property for as long as you live is a better option than buying.

I agree completely that if you play the game right, buying a home can be a worthwhile investment not just from ending up with a place you can live in (or sell), but from the ability to capitalize on market downturns, fixing/improving/expanding a place in order to add even more value. However, I'm just saying that it is not immediately a good decision in and of itself. It is also not necessarily a choice that is better versus renting in both short and long term timeframes (although more likely in shorter term timeframes).

I also believe that home ownership is often touted as a near risk-free and guaranteed wealth-maker, which is a little silly. There are MANY ways to invest money that could be a better choice for people. Home ownership may be someone's best option but only careful research and assessment would define that.

Also, my understanding is that this person will be out of the country and FAR away from any home they might purchase. This is not your typical case and the risks involved in buying a home and renting it out can have much more significant consequences without a local support network.