Quote:
Originally Posted by xxweekxx
but say i rent.. assume mortgage/rent same thing..
so i spend 15k/yr on rent,(a little over $1k a month) in 30yrs id have spent $450k in rent..
NOW assume a house with same mortgage, in 30yrs id have spent $450k in mortgage, EXCEPT i still have an asset worth at least $450k assuming 0% appreciation in 30yrs(which is impossible)
so tell me how renting is better..
its like flushing money down a toilet.. you are paying someone every month and you dont own shit.. while buying yeah im paying every month, but its still an asset...
|
Lets work with easy numbers, lets say you have 20k for a down payment on a 100k house...
option a:
take 20k and invest in stocks for example, get 12% annual return
in 30 years that 20k will turn into close to 600k (20k*1.12^30=599k)
option b:
put 20k down, and buy a 100k house, it appreciates at 6%
in 30 years the house is also worth around 600k (100k*1.06^30=577k)
So your "assets" in 30 years are basically the same...
If you look at the cashflow during those 30 years, without spelling out the details, it actually turns out that you spend about the same whether you buy or rent... (When you own a house you pay mortgage, taxes, maintenance, insurance, etc)
In some cases you may actually end up paying less when renting, in some cases a little more...
