So I’m going to change the numbers but keep the ratios the same here.
I paid $100/mo as a renter for me and my wife. Our first house cost $200/mo not including home insurance, things like HVAC/termite/pest contracts, annual repairs, etc. Our house is definitely bigger but if I adjust for sqft (same neighborhood so that’s accounted for) our rent would’ve been about $140/mo. But after that, it’s just utilities. Not even appliances.
The benefit of the house was a fair bit went towards principal but for most fixed rate 30yr mortgages even at a great interest rate, you’re paying more than half into interest when you pay your mortgage every month until about year 9 or 10. That interest is money completely lost, no value for you. And if the market goes downward, you can lose money on the sale or at the very least eat away at your investment.
I am not saying in the long run owning is not advantageous. But there is a lot to consider especially when historic interest rates are no longer available that can make renting the superior option. Especially if it is just one or two people living together.
So I’m going to change the numbers but keep the ratios the same here.
I paid $100/mo as a renter for me and my wife. Our first house cost $200/mo not including home insurance, things like HVAC/termite/pest contracts, annual repairs, etc. Our house is definitely bigger but if I adjust for sqft (same neighborhood so that’s accounted for) our rent would’ve been about $140/mo. But after that, it’s just utilities. Not even appliances.
The benefit of the house was a fair bit went towards principal but for most fixed rate 30yr mortgages even at a great interest rate, you’re paying more than half into interest when you pay your mortgage every month until about year 9 or 10. That interest is money completely lost, no value for you. And if the market goes downward, you can lose money on the sale or at the very least eat away at your investment.
I am not saying in the long run owning is not advantageous. But there is a lot to consider especially when historic interest rates are no longer available that can make renting the superior option. Especially if it is just one or two people living together.