I can’t really wrap my head around it, you can have a tenant in there that maybe covers the mortgage, but it’s not really a good investment if you’re not getting a return?
Even if you use 500k to buy a property cash, wouldn’t that money be better off in the market?
In: Economics
When you own a house, you are saving money by not paying rent. Saving money is equivalent to getting it as a return. Don’t believe me? Well then, there are countries like Spain, Iceland, and the Netherlands that actually tax homeowners on what they call imputed income, which is the amount that they would be receiving as rent had they not been living in their house!
If that doesn’t qualify as a return, then I don’t know what does. In addition, this return from owning and living in your own house is tax-free in most countries in the world.
It’s quite impressive, actually.
Not to mention that several countries exempt certain types of property from capital gains. In addition, where else are you going to get a 30-year fixed rate loan at low interest rates like you do in the US? As an investment, housing has everything going for it. With massive government subsidies.
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