[paulcole]

> 1) you own a valuable asset

I guess this one is a matter of perspective. I don't see a house as an asset in my life.

> 2) your cost of living falls dramatically

My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner. They only start catching up after decades.

[jjav]

> I don't see a house as an asset in my life.

But you do! You said you are paying rent, thus you attach value to having a place to live.

> My cost of living was dramatically lower the whole time leading up to the point where the drop-off occurs for the homeowner.

In the other response you acknowledged this is from comparing rent on a tiny apartment to mortgage on a house, which cannot be compared.

If you don't need a house you could buy a tiny apartment. That gives you the benefit of a low mortgage now and zero mortgage when you're older.

[paulcole]

> But you do! You said you are paying rent, thus you attach value to having a place to live.

I mean obviously it’s an asset in that it adds value to my life b/c without it I’d be homeless. Thx for pointing that out.

[MattPalmer1086]

Well, I see my house as my home. But I do know that if things ever got rough I could sell it and live somewhere cheaper with a good chunk of money left over. So it is an asset, even if you don't think of it like that on a daily basis.

Whether renting is cheaper than buying varies. In the short term it often is, but not always. There is generally a long term point where buying is cheaper - but again, not always! If you can do something else with the money you save renting, then good for you.

To put this on context, to rent a house in my street is only a tiny bit cheaper than a mortgage on it. So it would not make long term sense to rent unless you had no choice.