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Given that home prices have risen faster than other assets, does the traditional math of owning vs renting still play out? Is it still cheaper to own vs rent ov
by diogenescynic 6y ago
Given that home prices have risen faster than other assets, does the traditional math of owning vs renting still play out? Is it still cheaper to own vs rent over say a 30 year period? I often wonder if you just put that money in the stock market where you don't have maintenance costs, property taxes or other costs associated with owning a home--and you're more flexible to move. Any charts that compare the long term investment of a home to stocks?
- UncleOxidant 6y agoYou've gotta live somewhere. If I was renting I'd be paying about 2X what I'm paying for the mortgage on the house I bought 11 years ago. That would cut how much I could invest in other areas like stocks. I don't see it as an either/or situation - you can own and you can invest.
- diogenescynic 6y agoBut what about property taxes and maintenance costs? Yes, you may pay less comparing just the mortgage payment to rental payment but there are other costs. I just don't know that it's as straight forward as it used to be unless you live close to good jobs and never plan to move.
- UncleOxidant 6y agoI'm including property taxes in that number. Sure, maintenance isn't included in that number - I figure about $200 to $300 / month for that. In another 2 years my mortgage will be paid off and then I can even up that maintenance number to include some potential remodeling.