3 ms·
You get to use the property for that entire time rather than having to wait until you can pay for it in cash, however. Your alternative to paying a mortgage isn
by conjecTech 12y ago
You get to use the property for that entire time rather than having to wait until you can pay for it in cash, however. Your alternative to paying a mortgage isn't living in a home for free. It's paying rent or being homeless. If your rent is $2,500 a month, you need to subtract about $900k from that amount you're talking about putting in your savings account because it'll be going to your landlord instead.
- grecy 12y agoI have no idea where you live that rent is $2,500 a month, but if it really is, I'm guessing houses aren't $400k.
- conjecTech 12y agoIm talking what you would otherwise pay in rent for a house of the same type and quality. As both a homeowner and landlord of properties in that price range, I can tell you that those numbers arent far off. If you're trying to compare taking a mortgage on a 400k home to renting a property that would sell for considerably less, you aren't talking about the effects of taking on debt, you're talking about the effects of downgrading your lifestyle.