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> when you rent you're both paying the landlord's mortgage, plus their profit. True, of course. But you are also paying the landlord's property taxes and maint
by fknorangesite 5y ago
> when you rent you're both paying the landlord's mortgage, plus their profit.
True, of course. But you are also paying the landlord's property taxes and maintenance costs and (sometimes) utilities and....
A pet peeve of mine is when people compare mortgage payments to rent payments as if they are a equivalent. There is a lot of additional overhead in homeownership beyond the mortgage payment.
Though maybe it's a sore point for me because my furnace died this morning and it's -40 outside so guess who gets to drop an unplanned $6k this week?
- chrisseaton 5y ago> There is a lot of additional overhead in homeownership beyond the mortgage payment. Which you pay via your rent as well, as your landlord is also paying those overheads. When you rent you're paying everything you pay when you own... plus profit for someone else.
- Turing_Machine 5y ago> plus profit for someone else. Well, possible profit. There is risk involved. Underwater mortgages are totally a thing. More recently, a fair number of landlords are in trouble right now due to the COVID eviction pause. Their tenants stopped paying, but their own principal, interest, and insurance payments kept going clickety-clickety-click. Some of them are even walking away from the properties. It's also important for everyone to keep in mind that not everywhere is the Bay Area, or even California. Judging nationwide housing conditions by the conditions in those regions is likely a mistake.
- fknorangesite 5y agoYes, that's what I just said. The problem is that there is a tendency for people to compare the rent payment directly to only the mortgage payment.