[EconProf]

Our family is doing this, on a small scale, and from our experience, as well as impartial third party analysts, this is a good program. You get to keep up with the progress of your borrower, you can chose from many countries and different types of people, and the payback rate is remarkably high and prompt, often ahead of schedule.
If you believe as I do that foreign aid usually does more harm than good–entrenching dictators and feeding corruption–then this is a good free-market way to help these budding entrepreneurs.

[EconProf]

Our family is doing this, on a small scale, and from our experience, as well as impartial third party analysts, this is a good program. You get to keep up with the progress of your borrower, you can chose from many countries and different types of people, and the payback rate is remarkably high and prompt, often ahead of schedule.
If you believe as I do that foreign aid usually does more harm than good–entrenching dictators and feeding corruption–then this is a good free-market way to help these budding entrepreneurs.

[EconProf]

Our family is doing this, on a small scale, and from our experience, as well as impartial third party analysts, this is a good program. You get to keep up with the progress of your borrower, you can chose from many countries and different types of people, and the payback rate is remarkably high and prompt, often ahead of schedule.
If you believe as I do that foreign aid usually does more harm than good–entrenching dictators and feeding corruption–then this is a good free-market way to help these budding entrepreneurs.

[EconProf]

Our family is doing this, on a small scale, and from our experience, as well as impartial third party analysts, this is a good program. You get to keep up with the progress of your borrower, you can chose from many countries and different types of people, and the payback rate is remarkably high and prompt, often ahead of schedule.
If you believe as I do that foreign aid usually does more harm than good–entrenching dictators and feeding corruption–then this is a good free-market way to help these budding entrepreneurs.

[EconProf]

The original subject “throwing your money away on rent” is still a falacy, in that the renter gets a place to live for a month.
The rent vs. buy decision is an ongoing discussion topic with many considerations beyond the simple one of mortgage payment vs. rent, including:
1. Tax ramifications
2. Appreciation/depreciation probabilities
3. Freedom to move
4. Pride of ownership
5. Freedom to alter/modify home
6. Cost of plumbing/el/AC/WH/roof etc. repairs & replacements (widely underestimated)
7. Opportunity cost of equity
8. Your guess of interest rate direction

One could list more, but this shows the decision is more personal and more complicated than it first appears.
Most of the posts here selectively pick the dates they use to justify their foregone conclusion. As TG shows, its all about timing. We can say with the evidence now available, that ON AVERAGE, anyone who bought before about 2002 has probably broken even pricewise. This means those who bought between 2002 and last month are behind. At the rate prices are still falling, breakeven may be back to 1999 or 1998 before we hit bottom–who knows? But the group losing or breaking even is rapidly growing in size, and may soon constitute a majority of current homeowners.

[EconProf]

The original subject “throwing your money away on rent” is still a falacy, in that the renter gets a place to live for a month.
The rent vs. buy decision is an ongoing discussion topic with many considerations beyond the simple one of mortgage payment vs. rent, including:
1. Tax ramifications
2. Appreciation/depreciation probabilities
3. Freedom to move
4. Pride of ownership
5. Freedom to alter/modify home
6. Cost of plumbing/el/AC/WH/roof etc. repairs & replacements (widely underestimated)
7. Opportunity cost of equity
8. Your guess of interest rate direction

One could list more, but this shows the decision is more personal and more complicated than it first appears.
Most of the posts here selectively pick the dates they use to justify their foregone conclusion. As TG shows, its all about timing. We can say with the evidence now available, that ON AVERAGE, anyone who bought before about 2002 has probably broken even pricewise. This means those who bought between 2002 and last month are behind. At the rate prices are still falling, breakeven may be back to 1999 or 1998 before we hit bottom–who knows? But the group losing or breaking even is rapidly growing in size, and may soon constitute a majority of current homeowners.

[EconProf]

The original subject “throwing your money away on rent” is still a falacy, in that the renter gets a place to live for a month.
The rent vs. buy decision is an ongoing discussion topic with many considerations beyond the simple one of mortgage payment vs. rent, including:
1. Tax ramifications
2. Appreciation/depreciation probabilities
3. Freedom to move
4. Pride of ownership
5. Freedom to alter/modify home
6. Cost of plumbing/el/AC/WH/roof etc. repairs & replacements (widely underestimated)
7. Opportunity cost of equity
8. Your guess of interest rate direction

One could list more, but this shows the decision is more personal and more complicated than it first appears.
Most of the posts here selectively pick the dates they use to justify their foregone conclusion. As TG shows, its all about timing. We can say with the evidence now available, that ON AVERAGE, anyone who bought before about 2002 has probably broken even pricewise. This means those who bought between 2002 and last month are behind. At the rate prices are still falling, breakeven may be back to 1999 or 1998 before we hit bottom–who knows? But the group losing or breaking even is rapidly growing in size, and may soon constitute a majority of current homeowners.

[EconProf]

The original subject “throwing your money away on rent” is still a falacy, in that the renter gets a place to live for a month.
The rent vs. buy decision is an ongoing discussion topic with many considerations beyond the simple one of mortgage payment vs. rent, including:
1. Tax ramifications
2. Appreciation/depreciation probabilities
3. Freedom to move
4. Pride of ownership
5. Freedom to alter/modify home
6. Cost of plumbing/el/AC/WH/roof etc. repairs & replacements (widely underestimated)
7. Opportunity cost of equity
8. Your guess of interest rate direction

One could list more, but this shows the decision is more personal and more complicated than it first appears.
Most of the posts here selectively pick the dates they use to justify their foregone conclusion. As TG shows, its all about timing. We can say with the evidence now available, that ON AVERAGE, anyone who bought before about 2002 has probably broken even pricewise. This means those who bought between 2002 and last month are behind. At the rate prices are still falling, breakeven may be back to 1999 or 1998 before we hit bottom–who knows? But the group losing or breaking even is rapidly growing in size, and may soon constitute a majority of current homeowners.

[EconProf]

The original subject “throwing your money away on rent” is still a falacy, in that the renter gets a place to live for a month.
The rent vs. buy decision is an ongoing discussion topic with many considerations beyond the simple one of mortgage payment vs. rent, including:
1. Tax ramifications
2. Appreciation/depreciation probabilities
3. Freedom to move
4. Pride of ownership
5. Freedom to alter/modify home
6. Cost of plumbing/el/AC/WH/roof etc. repairs & replacements (widely underestimated)
7. Opportunity cost of equity
8. Your guess of interest rate direction

One could list more, but this shows the decision is more personal and more complicated than it first appears.
Most of the posts here selectively pick the dates they use to justify their foregone conclusion. As TG shows, its all about timing. We can say with the evidence now available, that ON AVERAGE, anyone who bought before about 2002 has probably broken even pricewise. This means those who bought between 2002 and last month are behind. At the rate prices are still falling, breakeven may be back to 1999 or 1998 before we hit bottom–who knows? But the group losing or breaking even is rapidly growing in size, and may soon constitute a majority of current homeowners.

[EconProf]

It always was the most ignorant advertising slogan ever.
For one month’s rent, the tenant got to sleep under a roof, hot water, flush toilets, several rooms, a kitchen, maybe a garage, and someone to call when something went wrong with any of the above. Considering the alternative to paying that month’s rent, this is a bargain.
As current events unfold, it will be apparent that the tenants are the lucky/smart ones.

[EconProf]

It always was the most ignorant advertising slogan ever.
For one month’s rent, the tenant got to sleep under a roof, hot water, flush toilets, several rooms, a kitchen, maybe a garage, and someone to call when something went wrong with any of the above. Considering the alternative to paying that month’s rent, this is a bargain.
As current events unfold, it will be apparent that the tenants are the lucky/smart ones.

[EconProf]

It always was the most ignorant advertising slogan ever.
For one month’s rent, the tenant got to sleep under a roof, hot water, flush toilets, several rooms, a kitchen, maybe a garage, and someone to call when something went wrong with any of the above. Considering the alternative to paying that month’s rent, this is a bargain.
As current events unfold, it will be apparent that the tenants are the lucky/smart ones.

[EconProf]

It always was the most ignorant advertising slogan ever.
For one month’s rent, the tenant got to sleep under a roof, hot water, flush toilets, several rooms, a kitchen, maybe a garage, and someone to call when something went wrong with any of the above. Considering the alternative to paying that month’s rent, this is a bargain.
As current events unfold, it will be apparent that the tenants are the lucky/smart ones.

[EconProf]

It always was the most ignorant advertising slogan ever.
For one month’s rent, the tenant got to sleep under a roof, hot water, flush toilets, several rooms, a kitchen, maybe a garage, and someone to call when something went wrong with any of the above. Considering the alternative to paying that month’s rent, this is a bargain.
As current events unfold, it will be apparent that the tenants are the lucky/smart ones.

[EconProf]

I spent a month in Australia and New Zealand last year and decided it was the one area I would chose to live in outside the U.S. The people are great, property laws and courts decent, and the economy capitalist, so they will do fine in the long run.
Barnaby33 may be right about their stage in the bubble-popping cycle, and certainly knows their market from living there. I’d be more focused on the long run and have faith that their people and government will make for a bright future.
The Aussie’s dollar fall of about 30% makes their prices even more attractive now than one year ago. And yes, if you believe the US$ will fall in the years ahead, then Australian real estate should do well as a currency play.

[Author]

Posts