they tell you renting is better than owning a house.

home prices don’t increase all that much, interest accumulates.

capital was better off compounding in equity markets.

the math works out.

but,

life is not lived on an excel sheet.

second order consequences of renting:

erratic landlords, frequent house hopping —> insecurity (think covid)

investment in a house is capital protection by default.

think of those invested in equities in the 2008 subprime crisis.

they didn’t have a home and the equity portfolio was washed.

it’s not enough to look at the first order consequences while making choices.

second order ones matter more.

fin.