Re:Building a vision of life without work (2015)
by neogodless on Wednesday July 14, 2021 @10:27AM
(#27833401)
In many areas, the amount you pay in rent isn't much different than what you pay in the ITI parts of PITI (principal, interest, taxes, insurance) plus the maintenance costs. On top of that, the difference between mortgage + maintenance and rent could be invested and growing over time.
There's no guarantee that buying a house will leave you richer than if you'd rented during the same time. Check out this calculator to explore your personal situation more closely, and examine the assumptions you make about growing wealth.
I know from personal experience, owning my first home, that I almost certainly would've been better off renting over that time period and investing the down payment and higher monthly payments than I ended up with having that house and equity. Sometimes you get lucky - and house prices go up and you sell at the right time (assuming you switch back to rent OR manage to then buy in a market where prices are lower than average.)
There's no guarantee that buying a house will leave you richer than if you'd rented during the same time. Check out this calculator to explore your personal situation more closely, and examine the assumptions you make about growing wealth.
I know from personal experience, owning my first home, that I almost certainly would've been better off renting over that time period and investing the down payment and higher monthly payments than I ended up with having that house and equity. Sometimes you get lucky - and house prices go up and you sell at the right time (assuming you switch back to rent OR manage to then buy in a market where prices are lower than average.)
https://www.nytimes.com/interactive/2014/upshot/buy-rent-cal...