My thoughts on renting versus buying

Economic tradeoffs: rent vs. buy math

• Several comments argue buying is financially superior long‑term: fixed‑rate mortgages hedge inflation, rents compound upward, and 5x leverage on a historically appreciating asset can dominate stock returns, especially in countries where cheap mortgage debt is the only accessible leverage.
• Others counter that in many high‑cost cities (NYC, SF Bay Area, parts of Europe), equivalent mortgages plus taxes/maintenance far exceed rent, sometimes by 2x, making disciplined renting + investing clearly better on paper.
• Landlord profitability is explained via (a) buying earlier at lower rates/prices, (b) long horizons where debt inflates away, and (c) rents needing only to cover operating costs, not a new buyer’s full PITI.
• Transaction costs (taxes, fees, notaries, stamp duty) and ongoing expenses (property tax, insurance, major repairs) are highlighted as often underweighted in “home as investment” narratives.

Stability, flexibility, and life stage

• Pro‑ownership side emphasizes:
  • Protection from eviction and unpredictable rent hikes, especially important with kids, school continuity, and retirement security once mortgages are paid off.
  • Psychological benefits of control: customizing the home, not relying on a landlord’s priorities, and avoiding last‑minute moves.
• Pro‑renting side stresses:
  • Mobility for job changes, layoffs, or relationship changes; less risk of being “trapped” in a stagnant or declining area.
  • Lower exposure to catastrophic repairs, special assessments, or local tax spikes.
  • Particularly attractive for early‑career workers whose earnings can grow faster than housing costs.

Community, lifestyle, and “overbuying”

• Debate over whether ownership really fosters stronger communities; many say neighbor relationships are more about personality, kids, and culture than tenure type.
• Multiple commenters note both buyers and renters “overbuy”: large houses and luxury apartments used as status signals rather than needs.
• Some reject treating housing primarily as an investment, valuing a stable, personalized home over optimizing net worth.

Market and policy variation

• Outcomes are said to depend heavily on jurisdiction:
  • US advantages like 30‑year fixed mortgages, mortgage-interest deductibility, Prop 13–style tax caps, and owner‑favored pension rules.
  • Strong tenant protections and different tax regimes in Germany, Switzerland, Australia, etc., often tilt the calculus toward renting.
  • Institutional and mega‑landlord ownership, buy‑to‑let booms, and limited supply are blamed for locking many into “permanent renter” status despite buying being mathematically preferable if down payments were feasible.

Critiques of the article

• Many see the piece as one‑sided and light on concrete math, downplaying inflation hedging, leverage, tax treatment, and eviction risk.
• Others say it usefully challenges the cultural myth that buying is always the rational choice, but overgeneralizes from a child‑free, mobile, high‑income tech perspective.