That’s fine, go ahead and double my figures then, that’s 270k you will save at the end of 30yrs. That still doesn’t match the original value of your home. Not to mention for the next 20 years of your life your home is paid off and worth 2-3 times what you paid.
Downside. Sell all your stuff. Get an RV and get back to basic subsistence living.
Just not how I want to live. I want a house the grandkids can visit someday. To each their own I guess
But that is assuming that your rent stays the same for 30 years. Which it most certainly won’t. My mortgage however will, it might even drop if I can refinance it to a lower level. That plus the appreciation of my house and not having a payment for the next 20-30 years would probably be enough to come out ahead. Surely the piece of mind that nobody will ever tell me I don’t have a place to live anymore is more then worth it.
Taxes, insurance and maintenance costs will increase yearly eating up most if not all appreciation. Average maintenance costs are estimated at 3% yearly. Like the example, after year 8, the interest covers the rent payments. That's the rest of your life with no out of pocket housing costs.
Well those things certainly do not increase yearly. And you can write off your mortgage at the end of the year to cover the rest
Plus, I know this is not the norm, but my home appreciated 200k in 8 yrs. Or maybe it is the norm, idk
My taxes, insurance and maintenance rise every year. The standard deduction is so large that 90% of W2 filers can't itemize, so no deduction for mortgage interest, taxes or insurance.
Well then you need to move, get a new ins. Company, and do maintenance yourself, and a new tax guy
The average is 4%. We bought a house in 2010 that had dropped 50% from it's last purchase price in 2004. It's best to compare averages. IMO
Using that logic I could say that most people who rent will not take the difference and invest it either. Doesn’t mean that it can’t be done.
I'm only talking 1-2% a year.
Yeah it just depends. That probably is the average since covid
My example only works if you are committed to saving the difference. It's amazing to think that 8 years of diligent saving can set you up for a lifetime of financial freedom. My youngest daughter graduated in 2020 and already has 25K in her investment portfolio. If her and her boyfriend stay on task, they will eclipse 100K in 3 more years.
When will you see the benefits of the appreciation?
And also, I’m not sure where u came up with your rent vs buy figures. Buying is almost always cheaper than renting, probably $200-$500 mo. Cheaper.
Google it. There are dozens of articles that compare the costs. The USA Today article I referenced took an average from the 50 largest cities in the US. They were 2022 numbers.
Ok but they are globalist corp. they are not comparing apples to apples in the real world. Listen to Dave Ramsey, he explains it, and it makes sense. Rents follow buying but a little higher because the person who bought the rental property has to make money on it. So whatever the house that u are renting, u could have bought it for 200-500 per month cheaper. In fact, someone did, your landlord.
