4 ms·
800 bucks a month or a year? 300k place with 20% down should be about $1500 a month ($1600 a month at 10%) for mortgage + property taxes. Am I missing somethi
by mikeryan 11y ago
800 bucks a month or a year?
300k place with 20% down should be about $1500 a month ($1600 a month at 10%) for mortgage + property taxes.
Am I missing something?
- deleted 11y ago[deleted]
- nkrisc 11y ago$800/mo for an HOA fee is crazy. I recently purchased a condo for $330k at 20% down and I'm saving $200/mo over renting a smaller place.
- mikeryan 11y agoAgreed thats why it should make sense to buy.
- akcreek 11y agoWhat about the opportunity cost of the $66,000 you put down? You could likely earn more than $200/mo pretty easily with $66,000 in cash to utilize. It is too simplistic to say you are saving $200/mo just because the monthly P&I payment is $200 less than a rent payment. That doesn't take into account what you could have done with the cash, property tax, maintenance, etc... Of course the big unknown is the future value of the property, which makes this very difficult to calculate accurately. I've looked at this several times and renting typically comes out on top for me. I still decided to own though because I couldn't find what I wanted to rent and I care more about where I live than making sure it is the smartest purchase I can make.
- jameshart 11y ago"You could likely earn more than $200/mo pretty easily with $66,000 in cash to utilize" How? That's more than a 3% return.
- charlesdm 11y agoI can easily make 10-15% a year on my money investing, so that $66k downpayment actually means I would lose $6.6k-9.9k in annual income.
- mistermann 11y agoHow do you make an easy 10 to 15%?
- charlesdm 11y agoStocks, bonds, currencies, property, alternative assets (i.e. acquire a profitable something, invest in passive income assets such as solar energy SPVs, music royalties, etc) It still takes a time investment to achieve that. There's no free lunch.
- mistermann 11y ago> There's no free lunch. Indeed. It's not at all easy to make 10%+ on a recurring basis.
- nkrisc 11y agoIf I could easily make 10-15% a year investing on top of my job, I'd do that. Maybe I'm just not as gifted as you.
- charlesdm 11y agoSorry, you're right. It's impossible to do - my bad. Ask any wealthy person (who enjoys finance) how they don't achieve those gains.
- nkrisc 11y agoI don't know why you think I insinuated it was impossible. I'm not a wealthy person who enjoys finance so it's reasonable that I would not expect to see gains like that.