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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (54450)	2/22/2006 9:25:23 AM
From: GraceZ	Respond to of 110194

I would never say owning is better than renting unless I had detailed financial information of the person's tax situation, income and a good idea of how much inflation there is in the local rental market as well as the housing market. What works really well in Baltimore may not be a very good idea in LA. A lot depends on whether or not the person will invest the cash difference between owning and renting in assets that will appreciate at a better rate than they can expect in RE. The greatest advantage RE has, and it is a big one, is that you can employ a great deal of leverage. If you could get the same leverage in some other asset you might be better off in stocks and bonds. The leverage works in their favor in a market trending up but it also works completely against them on a RE trending down.