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After 30 years Mr Mortgage's depreciated house needs a new roof and thousands of dollars in repairs. Meanwhile the property taxes have gone up every year so he

• webninja 2y ago
  After 30 years, a renter has $0 in equity and Mr homeowner has a $400,000+ home he can keep or sell and which has been either appreciating or keeping up with inflation. In many parts of the country, taxes, insurance, interest, and principle total a couple hundred dollars less than total rent, leaving money left over for repairs. Repairs aren’t always needed as some people are better at not buying a money-pit than others. In many states, at least the ones that care to protect their middle class, there is a cap on the max yearly percentage increase in property tax on one’s primary domicile only. Commonly this cap is 3%. $3.6k per year property taxes are pretty common (that’s $300 per month). In some cities, that’s just a single rent payment now. Wherever you rent, that tax bill is passed along to the renter anyways. Keep spreading that gospel. I would be happy to rent to you. It would be nice hearing a thank you for paying off my mortgage for me.
  • c22 2y ago
    I agree that in many cases home ownership is a better long term wealth strategy than renting. But not in all cases, of course. If Mr. Mortgage is moving every 2-3 years and acquiring a new mortgage each time he may have been better off renting. Anyway, I'm just trying to provide some alternate perspective, not pick a fight. I own three homes and rent out two of them.