http://jaxn.org/article/2005/02/18/why-i-chose-an-arm-mortgage/ the philosophy of technology Fri, 21 Nov 2008 20:23:43 +0000 http://wordpress.org/?v=2.7-beta2-9582 hourly 1 http://jaxn.org/article/2005/02/18/why-i-chose-an-arm-mortgage/comment-page-1/#comment-806 Why Buy a House When You Can Rent at Jackson Miller Fri, 02 Jun 2006 17:40:23 +0000 http://jaxn.org/article/2005/02/18/why-i-chose-an-arm-mortgage/#comment-806 [...] I just read a post by Chris Welch titled Misconception: Renting is for Suckers. My take on it is that when buying a house you are not making an investment as much as you are committing to a liability. They talk about PITI costs (Principle, Interest, Taxes and Insurance). This of course reminds me of my current situation which I wrote about in Why I Chose an ARM Mortgage. Here is some of what I said then: Essentially we are only paying rent on this house. However, our gamble (business plan) is that the value of the property will continue to grow at a somewhat similar rate for another year or two. This house will be a liability for a few years, but it does have the opportunity to yield a pretty great return. As long as the house appreciates at a rate that is higher than our interest rate (which is below 6%), than when we sell the house in a few years we will have lived there for free and will still make money. To me this means I can count this purchase as an investment instead of as a liability. We will have some equity thanks to our down payment and the growth rate. [...] [...] I just read a post by Chris Welch titled Misconception: Renting is for Suckers. My take on it is that when buying a house you are not making an investment as much as you are committing to a liability. They talk about PITI costs (Principle, Interest, Taxes and Insurance). This of course reminds me of my current situation which I wrote about in Why I Chose an ARM Mortgage. Here is some of what I said then: Essentially we are only paying rent on this house. However, our gamble (business plan) is that the value of the property will continue to grow at a somewhat similar rate for another year or two. This house will be a liability for a few years, but it does have the opportunity to yield a pretty great return. As long as the house appreciates at a rate that is higher than our interest rate (which is below 6%), than when we sell the house in a few years we will have lived there for free and will still make money. To me this means I can count this purchase as an investment instead of as a liability. We will have some equity thanks to our down payment and the growth rate. [...]

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