The Coloradoan of Ft. Collins has an article on the see-saw of housing rentals: during the easy-money boom, rentals were down as anyone could qualify for a cheap mortgage and buy a home. The gimmick was always “why throw money away on rent?” For me, I look at a mortgage as no different from rent: both are throwing money away at a problem that is better solved through thrift and focus rather than paying someone for 30 years to live in a home that shouldn’t take more than 7 years to buy. With the rising of interest rates, rental properties look to be much more cheaper than a mortgage, and when you look at the amount of principal paid on a high mortgage, it is often more than the cost of the rental. Renting and saving the difference makes more sense than buying if you’ll never really own the property. Read this entire article at the housing bubble site.

Related posts:

1. Looking for a Starter Home? Rent.
2. Dada’s Rules Before Buying a House
3. What if no one can afford to live there?
4. My fears about buying a home
5. Housing Bubble News, July 14, 2006
6. Housing Prices always go up — not really
7. Housing Bubble News, June 27, 2006
8. A lifetime of debt is not ownership
9. Mortgage Short Sale: Forgiveness of Debt and the 1099
10. Gold Market Recap and News, May 4, 2006