I don't have any idea what a 240k home rents for since I am not in the rental market. My question to you would be why do you think the landlord doesn't have the same costs as a buyer? Ever since I've been in the market either renting or buying it has always been true that the rent I was paying was almost the same as what I would've paid for a mortgage. The issues that I first encountered some 40 years ago was obtaining the down payment. One thing that is different is that over time my payments went up as a renter, but once I had a mortgage (there were no adjustables when I bought) the payments were essentially stable with the changes only being in the cost of the insurance and/or taxes. But I never had any vary more than a hundred dollars over the life of the loan and when I added a couple dollars a month I paid them off earlier. So IF your premise is that there is a marginal difference between owning and renting I disagree. If I've misinterpreted your position, sorry.
| 50 YEARS, 1 HOME @ 5% APR: | |
| Purchase: | $ 300,000.00 |
| 10% Down: | $ 30,000.00 |
| Closing: | $ 6,000.00 |
| Interest: | $ 300,000.00 |
| Repairs: | $ 50,000.00 |
| Upgrades: | $ 100,000.00 |
| Property Taxes: | $ 120,000.00 |
| Moving (1 time): | $ 5,000.00 |
| Property Tax Deduction: | $ (20,000.00) |
| Interest Deduction: | $ (80,000.00) |
| Storage Fees: | $ - |
| Total: | $ 811,000.00 |
| Avg. Monthly: | $ 1,351.67 |
| 50 YEARS, 10 HOMES RENT @ $2100/month | |
| Monthly Rent @ 3% Annual: | $ 2,842,481.06 |
| Moving (5 times): | $25,000 |
| Storage Fees ($100/mo): | $60,000 |
| Total: | $ 2,927,481.06 |
| Avg. Monthly: | $ 4,879.14 |
The landlord was never considered.
It was meant as renting vs. buying over 30 years. It was
all ballpark estimating of out of pocket expenses.
A very rough draft you could say.
Besides I’m a contractor, I naturally over estimate to cover my a$$ anyway.