Explain how renting is better than buying if rent and mortgage/taxes = same
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Date: April 22nd, 2018 5:59 PM Author: fuchsia public bath
If I rent a place for $2000/mo, and I have the option of purchasing a home for $2000/mo (30 year 4.5% mortgage for $350,000 home and including taxes), why would this not be wise to do?
The $2000 to rent I will never see again. The $2000 into the home, at least 3/4 of that goes into my purchase of the home.
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35895596)
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Date: April 22nd, 2018 11:09 PM Author: walnut locale
Its expensive to buy and sell homes. Transaction costs can be significant.
But you're right that you're much better off buying than renting in much of the country. Most of us just don't live in those places.
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35897543) |
Date: April 23rd, 2018 4:12 AM Author: massive duck-like coffee pot stead
Issues:
- Opportunity cost of down payment.
- Maintenance and insurance costs.
- Significant transaction costs.
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35898626) |
Date: April 23rd, 2018 5:14 AM Author: Pearl Mad Cow Disease
my rent: 2400/month
mortgage for a place in my neighborhood: 3500/month minimum, plus taxes, plus every other fucking thing
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35898668) |
Date: April 23rd, 2018 2:18 PM Author: judgmental reading party
interest payment part of mortgage - tax credits + property tax + local fees + transaction costs annualised + maintenance + increase in value - decrease in value
vs
rent
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35901579) |
Date: April 23rd, 2018 2:24 PM Author: Soggy bateful school circlehead
also, your rent keeps going up.
otoh, your 30 year fixed mortgage stays the same for 30 years.
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35901645) |
Date: April 23rd, 2018 2:37 PM Author: startling main people
If all monthly costs are the same (accounting for down payment, opportunity costs, etc), owning has the benefits of building equity.
That's about it. The calculation can obviously be complicated and is speculative once you get into housing prices/rents/taxes changing.
Imho if you can buy for about what you're paying in rent and make significant equity each month and won't be leaving quickly enough that transaction costs will pwn you, it's worth looking for something.
(http://www.autoadmit.com/thread.php?thread_id=3956707&forum_id=2#35901752) |
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