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you're missing the part where the renter is continually investing the difference between their current rent and the mortgage they would be paying. but yeah, if
by leetcrew 5y ago
you're missing the part where the renter is continually investing the difference between their current rent and the mortgage they would be paying. but yeah, if you're prescient enough to know ahead of time that you're going to live in the same building for 35 years, you'd be foolish to rent.
- Sohcahtoa82 5y agoYeah but as you said in another comment, in some locales, the rent and a mortgage payment are equal. There would be no difference to invest. And considering a mortgage payment is constant while rent continuously goes up, in a few years, rent would EXCEED the mortgage payment. When I bought my house in the end of 2015, I paid $338K. Mortgage + property tax was $1800/month. Zillow estimated the rent value at $1700/month. It's now early 2022, 6 1/2 years later. Zillow estimates the house is worth $615K and has a rent value of $2500/month.
- wnolens 5y agoBefore you bought the house, were you renting previously at 1800/mo? Rent and mortgage may be similar for the same exact space, but rarely in cities do people rent entire houses. There is usually significant lifestyle inflation that comes with buying. In any case, where do you live? 615 is so cheap that I suspect the economics here aren't comparable to my situation. Maybe I'll move! Haha
- Sohcahtoa82 5y ago> Before you bought the house, were you renting previously at 1800/mo? I was renting a 2-bedroom, 1 bath, 800 sq foot apartment for $900/month which would have been going up to $1,100/month if I had signed a new lease instead of buying the house. The house is 3 bedroom, 2.5 bath, 1850 sq feet. > In any case, where do you live? 615 is so cheap that I suspect the economics here aren't comparable to my situation. Maybe I'll move! Haha Suburbs just outside of Portland, OR.