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In my experience in the recent market (in a HCOL city in the U.S.), rentals (even only compared to the costs in homeownership, i.e. ignoring principal payments)
by FreezeInTheDark 5y ago
In my experience in the recent market (in a HCOL city in the U.S.), rentals (even only compared to the costs in homeownership, i.e. ignoring principal payments) are much cheaper than mortgages for an equivalently sized house/unit. That's the assertion of the article, and it rings true.
You're right that the bulk of the mortgage payments, especially towards the beginning, do not go towards building any capital, which makes the investment even less appealing.
- shapefrog 5y agoIn my experience in the recent market (in a HCOL city in the U.K.) rent is only marginally less than the interest on the equivalent mortgage. All the cost calculations should be based off interest only. The principle repayment is a cashflow issue - and a signifcant one at that.
- sayonaraman 5y agocan confirm, monthly mortgage payment + taxes is about twice the monthly rent on similar property in HCOL US cities