Re:Show HN: Should I Get a House? a better rent vs. buy calc...
by fennecfoxen on Monday July 19, 2021 @04:23PM
(#27886885)
This is missing a rate of return on the money you would otherwise use for the down payment, information on whether that return would be taxable or is sheltered in a Roth or similar tax shelter, current and anticipated tax brackets if one sees that income taxed (at both time of sale and possibly retirement), current and anticipated capital gains rates that might apply to the gains from the home sale in the future (if you're over the threshhold)...
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Re:Show HN: Should I Get a House? a better rent vs. buy calc...
by pessimizer on Monday July 19, 2021 @05:18PM
(#27887360)
> rate of return the money you would otherwise use for the down payment
Really the most important number, but all of these suggestions are crucial to the calculation. Money that doesn't get invested in a house gets invested in other things. Pretend it's in an index fund.
Re:Show HN: Should I Get a House? a better rent vs. buy calc...
by motioncuty on Tuesday July 20, 2021 @01:15AM
(#27890312)
But when you take out a morgage you can leverage 800k of the banks money at negative real interrst rates, effectively paying you tens of thousands over the course of the loan and any appreciation of that asset gets multiplied by 5x on your initial down payment.
Re:Show HN: Should I Get a House? a better rent vs. buy calc...
by rashkov on Tuesday July 20, 2021 @02:04PM
(#27897070)
Negative because the loan interest rate is below inflation?
Re:Show HN: Should I Get a House? a better rent vs. buy calc...
by motioncuty on Tuesday July 20, 2021 @02:22PM
(#27897309)
Yup, mortgages are around 3% and the fed rate is near 0 for the next year or 2. If inflation averages over 3% per year, you are getting paid the difference to borrow.