Yeah, the words "monthly commitment" are the key there, which describe the upper limit to your exposure. There's value (which has a cost) to the limited liability.
Conversely, you're not entering into a long-term debt relationship, nor do you have the obligation to fund or perform ad-hoc maintenance. As a renter, you are abstracted from those additional and significant risks, but you do pay for the privilege. You get to simply throw money at the problem, not concern yourself with where to find a new zone valve at 11pm or whether you should tie up cash to keep inventory on hand.
There's a sizeable market of people who prefer not to buy - young people who aren't settled down to one place; older people who don't want to do maintenance work; middle-aged people who don't want commitment (because reasons).
There are also people who would prefer to buy but can't qualify. There are also people who merely think they would prefer to buy (but do nothing to structure their lives around it, or even comprehend the obligations it entails).
It seems you're talking earnestly about the people who prefer to buy but can't qualify.
In that case, you're stuck renting and invariably are going to hate the landlord/super (they always suck), the place will seem rattier every month, you obsess over visions of what you would do with the place if you just had ownership incentive to invest in the asset. Been there.
The only way out of that is to structure your life financially towards the goal. That can include voting with your feet to live somewhere not as expensive to buy (and taking the trade-offs in location), it can mean disciplined spending to reduce expenses, ambitious career advancement to increase revenue, and maybe partnering with someone highly trusted to go halvsies. This can be an outcome (though not a sole motivation) for marriage, or may look like an LLC with a friend with an operating agreement that clearly details the terms of dissolution, buy-out, inheritance, etc.
But at the end of the day it's important to recognize that mortgages are money-making endeavors for banks who are greatly incentivized to set them up (sometimes too much, e.g. see 2008 CDOs), but through a combination of regulation and their own risk-management need you to meet a certain risk profile (e.g. are you "stable", do you make more money that you owe, are you gainfully employed, etc.). They would no more lend to a bad profile than you would. Any you're not even family. ;)
Yeah, the words "monthly commitment" are the key there, which describe the upper limit to your exposure. There's value (which has a cost) to the limited liability.
Conversely, you're not entering into a long-term debt relationship, nor do you have the obligation to fund or perform ad-hoc maintenance. As a renter, you are abstracted from those additional and significant risks, but you do pay for the privilege. You get to simply throw money at the problem, not concern yourself with where to find a new zone valve at 11pm or whether you should tie up cash to keep inventory on hand.
There's a sizeable market of people who prefer not to buy - young people who aren't settled down to one place; older people who don't want to do maintenance work; middle-aged people who don't want commitment (because reasons).
There are also people who would prefer to buy but can't qualify. There are also people who merely think they would prefer to buy (but do nothing to structure their lives around it, or even comprehend the obligations it entails).
It seems you're talking earnestly about the people who prefer to buy but can't qualify.
In that case, you're stuck renting and invariably are going to hate the landlord/super (they always suck), the place will seem rattier every month, you obsess over visions of what you would do with the place if you just had ownership incentive to invest in the asset. Been there.
The only way out of that is to structure your life financially towards the goal. That can include voting with your feet to live somewhere not as expensive to buy (and taking the trade-offs in location), it can mean disciplined spending to reduce expenses, ambitious career advancement to increase revenue, and maybe partnering with someone highly trusted to go halvsies. This can be an outcome (though not a sole motivation) for marriage, or may look like an LLC with a friend with an operating agreement that clearly details the terms of dissolution, buy-out, inheritance, etc.
But at the end of the day it's important to recognize that mortgages are money-making endeavors for banks who are greatly incentivized to set them up (sometimes too much, e.g. see 2008 CDOs), but through a combination of regulation and their own risk-management need you to meet a certain risk profile (e.g. are you "stable", do you make more money that you owe, are you gainfully employed, etc.). They would no more lend to a bad profile than you would. Any you're not even family. ;)