[spdustin]

It's an expense, not a debt. It's like an operating expense, versus a mortgage, which is more like a capital expense amortized over a number of years.

I have no issue with mortgages entered into by people who understand how to live within their means. There are lenders who prey on those who don't truly understand what their means are, sure, but that doesn't make the whole enterprise of home ownership a faulty one.

And before anyone nitpicks: yes, you do own the house you buy with a mortgage. It's security for the loan, and the mortgage gives the banks the right to take the property away from you to settle your debt. On well negotiated loans used to purchase property smartly, it can actually be an investment. One that may not pay as much as an index fun after 30 years, but in the meantime, you've had a place to live.

I would also suggest that many (not most, just many) people without a mortgage are unmarried and/or not parents. There is an intangible benefit to "setting down roots" and "making a home of memories" with a family. I, personally, have found that to be invaluable.

[themartorana]

A house is a risky investment. Over the life of a 30 year mortgage, you may spend 100% the price of the house on interest, plus ever rising property taxes, repairs, roofs, driveways, land care and maintenance, and more. There's also transfer tax in some municipalities (2% on buy and sell in Philadelphia for example), 6% to a realtor to sell, and so on.

You'll need your house value to rise to at least ~225% of its initial purchase price over the life of your mortgage just to break even.

That doesn't count the time you spend on repairs and maintenance of your property that you never get back.

Here in the US, I have friends still under water from 2008, so house values don't always go up (and this is in the pricy DC metro area).

All investment is a risk. Never buy a house because you feel you should - do it because you want to. You want to put in the kitchen of your dreams, you want to live near family, you want your kids to grow up in one house their whole childhood.

If you make a profit in the end, wonderful! But don't do it for that. Rather, decide the kind of life you want to lead (do you enjoy moving every few years? Do you want to live abroad for 5 years? Do you prefer he flexibility and lack of responsibility that comes with renting?) and live that - if a house fits into it, great!