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      05-16-2019, 01:21 PM   #52
Hawkeye
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Quote:
Originally Posted by c1pher View Post
Well, I won’t do the whole cost benefit analysis here, but unless you’re buying in a rural area or paying cash, you rarely are putting all your money into the house. You’re 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. That’s not the case all the time so it does pay to shop. And when you “buy” 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 isn’t in that situation.

Just simply look at your mortgage statement and see how much is actually going to principal. That’s what you’re 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 won’t 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. I’m 53, been there done that. Switching to renting was the best thing I ever did and I’ve amassed several hundred thousand dollars over the period of time I started renting in less than ten years. YMMV of course.
You do realize that owning is cheaper than renting right? Nobody is going to charge you less in rent than they pay to own it. If you think you can rent an equal living space for cheaper than you can buy, you found a fool or you are missing costs.

Also, when you buy you get infinitely more equity than if you rent.

For the OP - When I was younger I would have said go for it (I did) but now that I have gotten wiser I say use the $$ for something else until you can buy the car without having to ask if you can afford it. Mine worked out well, I was car poor for a few years, but I still own the Z 12 years later and love every minute of it. I got lucky with no major maintenance, but I also bought new so I had less risk as well (free maintenance for a majority of the loan period)
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