Yes, it's better to get a mortgage, or better yet, buy the house outright.
But not everyone has the credit score to get a mortgage, or the cash to buy a $200,000 house outright.
Renting is done by poor and rich people- rich people, sell their $ 2 million house, and rent a $2 million house for a year or two, because they are hoping the housing prices will collapse and they can buy it back in a year for 1.5 million$.
Poor people rent because they don't like being homeless
>>1068839 Renting can be good if a combination of the following: >houses are overpriced and/or going to drop soon >you're not going to be able to stay in that location for a number of years >you can bear to rent a significantly cheaper place than you'd buy for a while and invest the difference in cost wisely (the first few years of a mortgage you're not really building much equity [i.e. you're mostly paying interest])
>>1068841 >better yet, buy the house outright. The opportunity cost of buying a house vs. investing in stocks is pretty huge. 200k compounded over 40 years in the stock market would be millions. 200k mortgage over 40 years is nowhere near that amount.
It would be better to take a mortgage and invest the rest.
1) Buy a house that has a few bedrooms 2) Rent the spare bedrooms out 3) Have them pay rent and bills, don't ass rape them, but have them pay enough to cover their shit plus a little more. 4) After the house is paid off, kick them out
>>1069107 >If you can simply buy the house outright, having a mortgage would still be better since you can write it off on taxes, no? It depends if you have a better use for the money. If you think your can earn more deploying that money elsewhere (e.g., in the markets) then holding a mortgage is a wise financial decision.
Debt isn't necessarily evil, and mortgage debt is the least evil of them all. It's usually cheap, its tax deductable (as you note), it improves your credit score, and it looks god on your financial and employment profile (homeowners are seen as more stable, reliable and dedicated).
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