News for hackers. Stuff that matters.

A comment on American Dream For Rent: Investors elbow out individual home buyers. Parent comment

Re:American Dream For Rent: Investors elbow out individual h... by jonfw on Monday February 13, 2023 @10:36AM (#34774752)
Most of your 5K “expenses” are not really expenses, you’re buying equity in your home, which is worth money. When you die or move, somebody will sell your house and get a bunch of cash

When the renter moves or dies, they’ll cross their fingers they get their security deposit back

Big difference

[ Parent | on HN ]
Re:American Dream For Rent: Investors elbow out individual h... by smileysteve on Monday February 13, 2023 @02:14PM (#34778672)
Principal; of a $5k mortgage payment, $1.5k is likely going towards the principal; meaning, they are paying $3.5k versus $3k rent; Add in that the $3.5k is interest or property tax expenses, and will save 25% ($875) on a significant portion of that.

So, after doing the math; $5k is actually costing $2.625k versus renting $3k.

[ Parent | on HN ]
Re:American Dream For Rent: Investors elbow out individual h... by itake on Monday February 13, 2023 @09:28PM (#34784423)
$450/mo property taxes (paid bi-annually)

$2800/mo interest on my 5.5% $600k mortgage

$1000/mo repairs.

$500/mo insurance.

$200/mo equity on the loan.

I'm spending $57,600 to buy $2,400 of equity.

[ Parent | on HN ]
Re:American Dream For Rent: Investors elbow out individual h... by jonfw on Monday February 20, 2023 @01:58PM (#34871448)
If it costs 2k/mo just to insure, maintain, and pay taxes on your property, how is somebody renting something comparable for 3k?

the landlords in your neighborhood are only taking 1000 a month to service their loans, their overhead, and then take profit? Sounds like a tough business

[ Parent | on HN ]