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The OP is talking about a situation where it would be cheaper to rent your home in the future, than make mortgage payments on it.
by random314 4y ago
The OP is talking about a situation where it would be cheaper to rent your home in the future, than make mortgage payments on it.
- BeetleB 4y agoYes, but are we splitting the payments between principle and interest? In most cases, after a number of years, the rental cost easily exceeds interest + insurance + tax for the same size property. Yes, it often seems the rental cost will be less than your monthly payments, but do realize that you lose all the rental cost, but not all your monthly payment.
- random314 4y agoIts simple to demonstrate scenarios where a loss in property value ends up being more expensive for the homeowners than renters in the long run. We had a crisis in 2008 because of this. There are online rent vs buy calculators that you can use to generate these scenarios. https://www.calculator.net/rent-vs-buy-calculator.html https://www.calculator.net/rent-vs-buy-calculator.html Plug in negative appreciation for property values and watch how the comparison tilts.