You're right, the numbers don't lie. And the "numbers" say that buying and renting homes doesn't provide outsized capital returns in relation to other investments over the long-run. Period.
This isn't rocket science; the buy/rent decision must be based on many individual factors, most of which relate to the individual housing markets, individual countries (outside of the US, the rest of the world can't write-off their mortgage interest, nor do they have 30 year fixed terms at historically low rates), and the current and expected price of money.
A house sale is also a negotiation. Price matters. There is no "always better to buy", for in that case the "seller" would always be losing. Oh, unless house prices go up, always and forever.
Why are banks or other financiers lending to you at 3.5%, when they can just buy up property and rent it out for whatever returns you believe you are able to obtain? Blackstone and others are attempting to do this as we speak. The outcome is unknown. What is your competitive advantage?
Again, there is no free lunch. The world is filled with people who think they've found a way to "beat" the market. Maybe you have, but I doubt it. Some people can make a living buying properties and renting them out; others will lose their shirts. A catch-all "X is better than Y" does not exist. Putting 200k into a house should provide you with a risk-adjusted return similar to putting 200k into the S&P, including imputed rent.
You're right, the numbers don't lie. And the "numbers" say that buying and renting homes doesn't provide outsized capital returns in relation to other investments over the long-run. Period.
This isn't rocket science; the buy/rent decision must be based on many individual factors, most of which relate to the individual housing markets, individual countries (outside of the US, the rest of the world can't write-off their mortgage interest, nor do they have 30 year fixed terms at historically low rates), and the current and expected price of money.
A house sale is also a negotiation. Price matters. There is no "always better to buy", for in that case the "seller" would always be losing. Oh, unless house prices go up, always and forever.
Why are banks or other financiers lending to you at 3.5%, when they can just buy up property and rent it out for whatever returns you believe you are able to obtain? Blackstone and others are attempting to do this as we speak. The outcome is unknown. What is your competitive advantage?
Again, there is no free lunch. The world is filled with people who think they've found a way to "beat" the market. Maybe you have, but I doubt it. Some people can make a living buying properties and renting them out; others will lose their shirts. A catch-all "X is better than Y" does not exist. Putting 200k into a house should provide you with a risk-adjusted return similar to putting 200k into the S&P, including imputed rent.