4 ms·
Don't forget about home repairs and renovations, HOA, and services like gardening, etc. depending on what you buy. It is easy to end up spending double rent on
by shostack 10y ago
Don't forget about home repairs and renovations, HOA, and services like gardening, etc. depending on what you buy.
It is easy to end up spending double rent on a comparable place. The difference is for now at least the home you buy can grow nicely so you need to do the math on rate of return for that vs other uses of that cash.
- vonmoltke 10y agoThose are all expenses your landlord has to pay if you are renting. If those costs plus mortgage is double rent than either landlords are hemmoraging money or something is seriously fucked up with the housing market.
- smsm42 10y agoTrue, but when you rent, the cost is obvious and stated upfront, however ownership has many hidden costs that are not apparent when you consider only purchasing price.
- Rapzid 10y agoAnd closing/financing fees! If you end up taking a job out of area and decide to sell(understandable as now isn't the right time to be purchasing a rental) you're out the fees.
- smsm42 10y agoOh yeah, those. You pay through the nose when you buy and when you sell. Can easily knock several percentage points off the price you thought you're selling for, or add the same to the price you though you're buying for. One has to be very careful to include those in all calculations. Renting is mostly flat-rate experience, and owning has much higher variance of payments. But owning has its own benefits :)
- vonmoltke 10y agoIf you live in an area with closing fees on rentals, like I do, rhat's a wash.