Posted on 09/01/2015 7:47:01 AM PDT by SeekAndFind
Our house would rent for at least $200 more than our payment.
I did my own analysis, and found that renting and buying are nearly equal for the first year. After that, buying makes far better sense.
If one plans to stay put for 5+ years, renting is a total loss financially. Even with no market appreciation.
There are many things which make owning a superior way to go.
Almost every owner occupied house is nicer than a “similar” renal house. This is never covered in these analyses.
If I want to make modifications, go right ahead. Bolt your safe to the wall or floor—your option, but not in a rental. Always much more storage in a house you own.
I have never seen a house owned for 15 or 20 years which was not much less expensive to live in than a rental.
We just assumed that we were stuck in a mortgage since we definitely didn't want to rent. I ran the calcs looking at how much we'd pay the bank over the life of the loan — omg! And that was for a moderately priced home. We are not rich.
Also, the tax write off is exactly that — you still have to pay the interest. The advantage is that you are not taxed on the interest amount.
I really don't understand how people can afford or be willing to spend hundreds of thousands of dollars on a mortgage. Likewise for school loans — another “investment.”
That is not the way we think. We want to live comfortable which includes not having an overwhelming mortgage. Ideally, we'd like to be debt free.
You can get a tiny house that’s yours outright and be free of a crippling mortgage.
Either that or rent and you still come out ahead.
The only time it makes sense to buy a home is when you live in a place where paying rent is like throwing away money.
Ya. Who has $100K laying around? That is how much a tiny house would cost.
However, the payments on a house like that might be around $900 per month which is comparable or less than renting.
Good exercise — compute the total interest paid on a 20 year fixed on that $100K house. Another $100K? That is money paid to the bank.
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