TJ,
Greetings from Money Sponge USA.
I agree with your observation that owning a home is consumption, rental property is investment.
It’s none of my business, of course, but it prompts the question: Do you own or rent your primary residence?
I ask because I am debating the merits of owning vs. renting. A few years ago I bought in USA a lovely house of the wooden stick variety, larger than I need, at an admittedly rich price, but thankfully employing minimal leverage (1/3 LTV). The house with all of its associated expenses is not a burden, but with mounting concern for the great reckoning that lies ahead of us, I’m wondering do I pay off my mortgage and watch as house value possibly erodes further or do I sell at a loss, move to a rental, and mineralize the rescued cash, saving it to put to work more efficiently one day in the I-hope-not-too-distant future, such as in rental property?
On the other hand, if we are headed for inflation (or hyper-inflation), wouldn’t it be wise to hold some kind of real property and mortgage?
PS - Your Coconut is a lovely little girl. |
