Personal Finance Flowchart by Frum Finance

[Moshe Green]

Let us keep in mind that when buying a house, especially for a young couple, the source of the money makes a huge difference.

Parents/grandparents will often, be only too happy to help out with a large chunk of the down payment, knowing that it will be a safe and solid investment for years to come. But if the couple asks for money to invest in the stock market so they will have savings 20 years down the line, the parents will be less inclined to help.

Same thing if the down payment is coming partially/wholly from Gemachim (very common in Israel to do such a thing). A gemach isn't interested in your savings fund but will help if you are using it to buy an apartment.

That being so,the purchase of a house will often be the only real option of maximizing the available monies.

[jye]

Let us keep in mind that when buying a house, especially for a young couple, the source of the money makes a huge difference.

Parents/grandparents will often, be only too happy to help out with a large chunk of the down payment, knowing that it will be a safe and solid investment for years to come. But if the couple asks for money to invest in the stock market so they will have savings 20 years down the line, the parents will be less inclined to help.

Same thing if the down payment is coming partially/wholly from Gemachim (very common in Israel to do such a thing). A gemach isn't interested in your savings fund but will help if you are using it to buy an apartment.

That being so,the purchase of a house will often be the only real option of maximizing the available monies.

Agree. Although that’s also some of the reason you are seeing young couples with 3-4 kids jump to million dollar homes instead of slowly building value in starter homes like their parents generation did. In fact, if young couples would pay for the chasunah or cover rent for their first apartments themselves you would see them making far more modest choices. We paid our own way, and rented a one bedroom 600 sq ft apartment with no dishwasher with one child, something that is almost unheard of in many communities today.

[niebloomj]

There’s no question that buying several years ago locked in lower fixed mortgage payments while homes appreciated to boot, while tenants saw their rent nearly double but that was an aberration.

I just made this exact point to Eli Frieds response to my article! Maybe you can make this point stronger.
https://www.linkedin.com/feed/update/urn:li:activity:7143706058207784960?commentUrn=urn%3Ali%3Acomment%3A%28activity%3A7143706058207784960%2C7143775422944608256%29&replyUrn=urn%3Ali%3Acomment%3A%28activity%3A7143706058207784960%2C7143924266130960385%29&dashCommentUrn=urn%3Ali%3Afsd_comment%3A%287143775422944608256%2Curn%3Ali%3Aactivity%3A7143706058207784960%29&dashReplyUrn=urn%3Ali%3Afsd_comment%3A%287143924266130960385%2Curn%3Ali%3Aactivity%3A7143706058207784960%29

[yaakovely]