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I am randomly choosing this property in San Francisco: https://www.zillow.com/homedetails/1915-Washington-St-San-Francisco-CA-94109/15074135_zpid/ https://www.
by itake 3y ago
I am randomly choosing this property in San Francisco:
https://www.zillow.com/homedetails/1915-Washington-St-San-Francisco-CA-94109/15074135_zpid/ https://www.zillow.com/homedetails/1915-Washington-St-San-Fr...
The Rental Estimate is $16,970/mo.
The cost of home ownership:
The Property taxes are $4,573 /mo.
Insurance is $1,628/mo.
Interest portion of the loan is $20,522/mo.
In summary, the cost to own the home $26,723/mo (NOT INCLUDING PAYING INTO EQUITY, DEPRECIATION), which is $10,000 more per month than it would be to rent this same home.
As a renter, you take that extra $10k/mo you are not spending on property taxes, insurance, interest, transaction fees, and investing that into the SNP500.
- carlosjobim 3y agoYes, I completely agree with you. If the total of interest + other costs is higher than rent, then yes it is a better deal to rent. But you can not include equity paid when comparing to the cost of renting.