D S 319
WKR
- Joined
- Jan 17, 2021
- Messages
- 367
Lets say you buy a home at 20, 30 year mortgage at $2000/month, and you plan to live in it until 75. That $2000/month mortgage goes away at the age of 50 and you paid $720000 total to live there and are sitting on a pile of equity from 50-75 without making any payments for 25 years.
Rent a similar home from 20 to 75 for $2000/month it would cost you $1,320,000 and your payment never goes away.
Very basic example of course but the point is youre ever ahead renting.
An extra 500k over a lifetime to never have to do maintenance or upkeep doesn’t sound too bad if you put it that way. That 720k isn’t painting the whole picture.