[prepend]

It’s pretty nice to be able to lock in a price for 40 years. Whereas rent will typically increase a few percent each year. So after 40 years, if you’re still there, rent will be 3-5x the original amount.

Whereas mortgage payments with a fixed interest rate don’t increase so really only expenses like taxes and insurance increase over time. So after 40 years your monthly spend may be 1.5-2x.

I’m expecting that eventually there will be an interest only perpetual mortgage where the principal never decreases so banks are basically just buying secured annuities based on the real estate collateral.

Some countries have 99 leases that sort of operate like this and I thought it was strange that people would be willing to pay to purchase these leases where they never owned the property. But I guess some stability is better then none.