if you add mortgage interest into the equation, you should deduct the cost of rent you saved by buying over the life of the mortgage...i was paying $1750 per month to rent a house when mortgage rates were 4%...it would have been profitable for me to buy a $750,000 house and pay the interest on the mortgage for 20 years even if the house didn't increase in value (roughly estimating and ignoring inflation)
maladroit Reviewed by maladroit on . one in five homes worth less than mortgage Almost 1 in 5 U.S. homes worth less than mortgage: report Last Updated: Friday, October 31, 2008 Reuters, special to CBC News Nearly one in five U.S. mortgage borrowers owe more to lenders than their homes are worth, and the rate may soon approach one in four as housing prices fall and the economy weakens, a report on Friday indicates. About 7.63 million residential properties, or 18 per cent, had negative equity in September, and another 2.1 million will follow if home prices fall Rating: 5