The article consistently fails to take into account inflation. For example, they don't want to bet on 2%/year appreciation--even though the long-term inflation rate is 3%.
They also cite the "myth" that costs go down over time as the principal is paid. In fact the real reason home ownership costs go down over time is that your income is subject to inflation but a fixed-rate mortgage payment is not. Having a fixed-rate mortgage is like getting a 3% cut in your rent every year.
They also cite the "myth" that costs go down over time as the principal is paid. In fact the real reason home ownership costs go down over time is that your income is subject to inflation but a fixed-rate mortgage payment is not. Having a fixed-rate mortgage is like getting a 3% cut in your rent every year.