>renting my 2 bedroom apartment will cost $1.2 million over 30 years>buying the cheapest house in my area ($400k) will cost $2.9 million over 30 yearsWhy did they make it a dumb financial decision to buy a home?
i bought my condo for 105k in 2023its now worth 165ki paid cash
i guess some people think sharing a wall with obnoxious retards isn't worth the savings
>>62483397subtract your homeowners insurance, HOA, and tax payments from that $165k. if you bought $105k of VOO (Vanguard S&P 500) in 2023 it would be worth $210k today. if you bought VGT (Vanguard IT) it would be worth $310k.you're better off than most, but you still lost money in the deal>>62483400i live in a split house. all my neighbors are old ladies
>>62483394Lower the interest rate and redo the calculations.Also take into account the landlord taking your deposit.
>>62483394>Initial costs 0 for rentingWrong. They always take 3 months of rent as a deposit that you don't get track.
>>62483394Rent is 1.1k for a 400k house.Monthly rent is 0.5% of the value of the house.Since it's 400k, rent will be 2k. The safety deposit will be 6k.
>>62486247surely he just fucked up the calculations by accidentthere's no way he could be lying to bait arguments on 4chan
>>62486229>Lower the interest rate and redo the calculations.That's the market rate. Even with a 30 year VA-backed loan at 5.75%, renting will be much cheaper>Also take into account the landlord taking your deposit.I already made my deposit so it's no added cost >>62486240I paid first month + security deposit>>62486247>Rent is 1.1k for a 400k house.I didn't say they were for the same building>>62486261you're retarded
It's a Rvturn to NormalThe plebs were only supposed to able to afford shitboxes and live their life slaving away for their landlord. Meanwhile actual detached houses were for the elite.
>>62486319Did you add a 5% rate of return for the house and also reduce the down payment to 5%?
>>62483394>Goyim is so dumb he can only lose money if he buys a house renting is way cheaper even in a long run>his jewish landlord is so smart he can buy a house rent it to the goyim (supposedly a loss if the first statements is true) and somehow make money. >both of this are true somehow.
>>62486330house appreciation was already 4.5%. moving to 5% changed very littlechanging downpayment also changed very little
>>62486346Rent should be for the same building.
>>62486346Rent will increase every year. Buying a home will stay flat or move very slightly. And PMI drops off once paydown + value increase makes LTV below 78%
>>62486397>Rent will increase every year. Buying a home will stay flat or move very slightly.Taxes and insurance will increase as property rates increase. PMI is minimal and I believe they factor that in.If renting is still $1.4 million cheaper after 30 years, what are the odds it will get even close to breaking even in the next 10-20 years of my life?>>62486371No it shouldn't. My rented apartment and the purchased home both suit my requirements and it's perfectly valid to compare them.
>>62483394It seems like you haven't taken the house appreciating in value over time in your calculation.Run the numbers again
>>62486494>purchase price: $400k>net proceeds (sale of house): $1.2 million>didn't take appreciation into account???
>house appreciates>net property taxes go upyeah I'm not buying, plus I can move with freedom when renting
>>62486514but when you BUY your home you OWN it. property taxes aren't effectively a rent you're paying the state where if you don't pay it they'll evict you :^)
>>62486520real estate is illiquid and requires maintenance, owning usually involves a mortgage for most people, the math speaks for itself, renting is cheaper and more flexible
>>62486478Taxes increase very slightly every year, and usually well below the actual appreciation rate. Meanwhile rent has gone up like 80% in the last 5 years.Also, if you pay more toward principle than owed, your actual costs go way down. Nobody holds on to the same mortgage for 30 years, the average life of a 30 year mortgage is around 7 years, between refinancing or selling.It's not as cut and dry as "buying is always better" but you're comparing apples and oranges in a lot of ways here.
>>62486529>just keep refinancing from one bank to another for lifeno thanks rabbi
>>62486529>Meanwhile rent has gone up like 80% in the last 5 years.Average annual increase is 3%-5%>Also, if you pay more toward principle than owed, your actual costs go way down. Nobody holds on to the same mortgage for 30 years, the average life of a 30 year mortgage is around 7 years, between refinancing or selling.You are investing in something that grows at 4%-5% per year and highly illiquid vs the market which is 10% per year and is much more liquid. That is a bad investment, even if you save on interest.>It's not as cut and dry as "buying is always better" but you're comparing apples and oranges in a lot of ways here.And yet you give no examples. Strange.
>no link to calculatorKYS
>>62486548https://www.metacrawler.com/serp?q=rent+vs+buy+calculator&sc=qd43T2hy2FOH10
>>62486534btw to get even close (under $125k difference over 30 years) I had to>decrease purchase price to $225k (nothing like that anywhere close to me)>set downpayment to 0% with 0% PMI>decrease interest rate to 6%>decrease maintenance to 1%>increase house appreciation to 5% yearly
>>62486534You're not investing in an illiquid asset, you're paying for somewhere to live and as a bonus there's an illiquid asset accumulating. That's a big difference. And you're getting the 30 year compounded interest rate on anything you put in, while hedging against the costs of moving and having rents increase a compounding 3-5% per year.Even an extra $100/mo for the first few years drastically reduces your total cost, which isn't something you can do for rent. The market doesn't go up 10% every year, while that money is guaranteed to provide you 5.75% compounding each year for the life of the mortgage, risk free. Sure beats putting it into treasuries. And yes, you refinance to shorten the term and to get better rates, both of which is doable once your LTV decreases from paying down the mortgage. You don't refinance to restart a 30 year loan unless you're retarded. But if you are, that's further decreasing the monthly payment compared to rent that just keeps climbing.You've made up your mind, so go rent. There are plenty of us who won't be.t. Bought $410k house in 2020, sold for $600k this year, ended up being paid to live in it for 6 years.
>>62486561If this doesn't include rental price increases, it's worthless. And you can get a mortgage at 5% down below 6% in most of the country, unless your credit is shit. Rates will be lower than that somewhere in the next 5 years regardless, so assuming you keep 6.73% rates for the next 30 years is retarded.
