So this is even in the USA over here not seemingly universal. Hitting up some detached housing in Zillow in my area, even with 20% upfront, mortgaging 80% over 30 years, the minimum property tax+mortgage+insurance on a house that might be $3,000 based on the sales price of other houses in the neighborhood in the past year, the typical rent is about $2300… So absolutely someone renting out a mortgaged property in this area is paying for that equity while the renter can come in with a modest deposit and get maintenance taken care of at a much lower rate than even a 30 year mortgage. At least the rental market here seems to be aggressively competing with 30 year mortgage payments with 20% down sort of picture…
So this is even in the USA over here not seemingly universal. Hitting up some detached housing in Zillow in my area, even with 20% upfront, mortgaging 80% over 30 years, the minimum property tax+mortgage+insurance on a house that might be $3,000 based on the sales price of other houses in the neighborhood in the past year, the typical rent is about $2300… So absolutely someone renting out a mortgaged property in this area is paying for that equity while the renter can come in with a modest deposit and get maintenance taken care of at a much lower rate than even a 30 year mortgage. At least the rental market here seems to be aggressively competing with 30 year mortgage payments with 20% down sort of picture…