[Porsche-O-Phile]

I agree completely.

Here's an example: I pay about $1,300 a month for a 2BR apartment with two garage spaces. The building right next to us is a "conversion" building - my neighbor living there in a comparable unit (about 900 sq. ft., ONE garage space, upstairs unit, etc.) is paying over $2,300 a month on an interest-only mortgage to "own" his place.

Neither of us is building any equity. So who's the fool?

The way I see it, the only way a house is a "good investment" nowadays is if you hit the lottery or have a trust fund whereby you inhereit about $100k - then it can serve as a stable place to "bank" your money until you're ready to sell years hence by taking a CONVENTIONAL, 20%-down, 30-year fixed only (all "funky" loans do not apply). Even then, I'd say it's only a "stable" investment right now if you're planning on holding it for at least 10 years. The market is far too volatile right now. I'm putting my money into stocks, futures and options right now and kicking the crap out of the rate-of-return I'd see with RE. Yes it sucks to write a rent check every month, but ultimately I think I'll laugh all the way to the bank versus the throngs of suckers out there that are "homeowners" in name only - effectively paying (overpriced) rent to a bank for nothing.

We shall see.