This is not true, because of timing, and mortgages with lower interest rates versus the current interest rate.
If I bought a house in the year 2000 for 200k, and still own it now, I might rent it out for $1200 per month (after refinancing in 2020 for a 2.8% loan on 50k or whatever is left on the mortgage), and still make a gross profit.
If the house were to be sold and purchased now in 2025, it may be valued at $600k or more. The mortgage on this house with 20% down would be like 3500 or 4000 per month after taxes and insurance.
So there is a huge plausible gap between renting and owning a property.
If you are arguing versus some potential mortgage in the past… sure. But you don’t get the mortgage of the past value, you get the mortgage of the current value with the current interest rates.
If I bought a house in the year 2000 for 200k, and still own it now, I might rent it out for $1200 per month (after refinancing in 2020 for a 2.8% loan on 50k or whatever is left on the mortgage), and still make a gross profit.
If the house were to be sold and purchased now in 2025, it may be valued at $600k or more. The mortgage on this house with 20% down would be like 3500 or 4000 per month after taxes and insurance.
So there is a huge plausible gap between renting and owning a property.
If you are arguing versus some potential mortgage in the past… sure. But you don’t get the mortgage of the past value, you get the mortgage of the current value with the current interest rates.