4 ms·

My landlord has to replace a rotting front porch, and that will cost him five months worth of the rent I pay him. There is so much more cost associated with ow

My landlord has to replace a rotting front porch, and that will cost him five months worth of the rent I pay him. There is so much more cost associated with owning a home than just the down payment and the mortgage payments. In fact, it often makes a lot more sense financially to rent, and it is also a lot more flexible.

Sohcahtoa82 4y ago
> In fact, it often makes a lot more sense financially to rent, and it is also a lot more flexible. If you need the flexibility, then yeah, sure. But if you have no plans to move or don't think you'll ever need to move, in the long term, owning is always going to win. Rent money just goes into a black hole. Mortgage payments build equity until you pay it off, at that point the asset is 100% yours and you're no longer making payments. Sure, you're paying for maintenance, but the maintenance costs will be less than what you were paying before. Also, rent always goes up, sometimes faster than inflation. A fixed mortgage doesn't. When I bought my house at the end of 2015 for $330K, Zillow estimated the rental value at $1,800/month, and my mortgage was $1,500/month. Now, cash value is estimated $560K and the rental value is estimated to be $2,700/month. If I chose to rent 7 years ago, I'd be spending $1,200 more per month right now. Another couple years, and I could be spending double.
- ghaff 4y ago
  >but the maintenance costs will be less than what you were paying before. Presumably yes but especially older homes still require ongoing expenses. Some are admittedly flexible in a given year. But property taxes, insurance, utilities, and property/house maintenance can still hit $10,000 a year or so fairly easily (though big maintenance projects tend to be a bit lumpy).