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      05-15-2019, 07:32 PM   #21
Primo Generalissimo

Drives: Porsche Macan Turbo
Join Date: Jun 2009
Location: DC area

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Originally Posted by Germanauto View Post
It's better to rent if you're only going to live some place temporarily, but renting long-term is good way to never grow wealth.
Well, I wonít do the whole cost benefit analysis here, but unless youíre buying in a rural area or paying cash, you rarely are putting all your money into the house. Youíre paying interest of course, property tax, home owner insurance, maybe flood insurance, HOA fees and dues etc. I can look at two homes side by side and the rental is typically cheaper with the owner paying the extras. Thatís not the case all the time so it does pay to shop. And when you ďbuyĒ a home, with interest, you are paying 3-4x the original purchase price over the course of a typical 30 year.

Sure, if you can pay cash or pay the house off quickly, it may make sense, but someone making $65k a year asking if he can take a car loan isnít in that situation.

Just simply look at your mortgage statement and see how much is actually going to principal. Thatís what youíre saving. The rest is going out the window. Again, if you pay cash, sure it makes sense. And you may make a small profit if you have to sell which wonít be taxed if you lived in the house for at least 24 months. And what happens when you need to replace the roof, windows, or hvac?

Trust me. Iím 53, been there done that. Switching to renting was the best thing I ever did and Iíve amassed several hundred thousand dollars over the period of time I started renting in less than ten years. YMMV of course.