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Most of your 5K “expenses” are not really expenses, you’re buying equity in your home, which is worth money. When you die or move, somebody will sell your house
by jonfw 4y ago
Most of your 5K “expenses” are not really expenses, you’re buying equity in your home, which is worth money. When you die or move, somebody will sell your house and get a bunch of cash
When the renter moves or dies, they’ll cross their fingers they get their security deposit back
Big difference
- smileysteve 4y agoPrincipal; of a $5k mortgage payment, $1.5k is likely going towards the principal; meaning, they are paying $3.5k versus $3k rent; Add in that the $3.5k is interest or property tax expenses, and will save 25% ($875) on a significant portion of that. So, after doing the math; $5k is actually costing $2.625k versus renting $3k.
- itake 4y ago$450/mo property taxes (paid bi-annually) $2800/mo interest on my 5.5% $600k mortgage $1000/mo repairs. $500/mo insurance. $200/mo equity on the loan. I'm spending $57,600 to buy $2,400 of equity.
- jonfw 4y agoIf it costs 2k/mo just to insure, maintain, and pay taxes on your property, how is somebody renting something comparable for 3k? the landlords in your neighborhood are only taking 1000 a month to service their loans, their overhead, and then take profit? Sounds like a tough business