Hi all, this is my first post.
I'm an American currently working in Japan and am planning to retire back in the US someday.
I always thought I would buy a house in the US, rent it out till we retire, and move in later and finish paying it off. But recently, I read William Bernstein's and Ramit Sethi's books, and they have both suggested renting instead of owning, and that the stock market (index funds) is a much better place to put your money.
This idea appeals to me as I couldn't manage the property myself and I know most property managers charge 10% of the rent. Putting everything in our Vanguard account would be simple and stress-free.
Then again, it appears that if we are going to buy, now is the time, with reasonable prices and low mortgage rates.
Is there a way to make a reasonable guess as to how much rent will increase in the future and to compare that with the cost of ownership over a given period of time?
How did you guys make the decision to rent or buy?
I'm an American currently working in Japan and am planning to retire back in the US someday.
I always thought I would buy a house in the US, rent it out till we retire, and move in later and finish paying it off. But recently, I read William Bernstein's and Ramit Sethi's books, and they have both suggested renting instead of owning, and that the stock market (index funds) is a much better place to put your money.
This idea appeals to me as I couldn't manage the property myself and I know most property managers charge 10% of the rent. Putting everything in our Vanguard account would be simple and stress-free.
Then again, it appears that if we are going to buy, now is the time, with reasonable prices and low mortgage rates.
Is there a way to make a reasonable guess as to how much rent will increase in the future and to compare that with the cost of ownership over a given period of time?
How did you guys make the decision to rent or buy?