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Actually you are almost guaranteed to lose by owning as well (after interest, opportunity cost, insurance, taxes, and maintenance) unless the appreciation is quite high (which can happen but usually isn't sustained over many decades).
I’m pretty much defining capitalism for you, but believe whatever you want. Rent away.
You aren’t defining capitalism or pretty much defining it and you couldn’t be more off base with the definition. You are entirely clueless on how things actually work. Im a homeowner btw and I think I’ve mentioned it multiple times in this thread.
Seriously though. Do out the math you might pay 100% the price of the home in interest over 30 years but it will appreciate and you'll probably still come out ahead. Now let's look at how much you pay in rent over 30 years for a comparable house. For argument's sake let's say you could rent a comparable house for the same monthly payment as you could mortgage one (you can't), let's use 2,000 a month as the payment (including taxes and HOA) . That's 720,000 dollars that you have literally thrown away if you were renting for a mortgage that would be about a 350,000 dollar home. Worst case scenario when you go to sell it in 30 years you'll get your money back so that cuts your spend to 370,000 vs 720,000 for renting. In reality your house will increase at the very least with inflation, you'll get back far more than the price of the home when you bought it. Your mortgage rate isn't going up every year like most rents do. You're totally at the control of someone else, they can raise your rent every time you sign a new lease with no guarantees of upgrading anything over that period of time. Figure you might need a new roof if you're owning (though in a town house the HOA would cover that) and maybe a new air conditioner, boiler, and other appliances. For an ultra worst case thought say you have to spend even 100k in repairs over 30 years. You're still FAR ahead if you own.
Actually you are almost guaranteed to lose by owning as well (after interest, opportunity cost, insurance, taxes, and maintenance) unless the appreciation is quite high (which can happen but usually isn't sustained over many decades).
No because I’m paying less than a renter per month. I’m the one with the extra income per month and I’m the one guaranteed to be both rent and mortgage free in another few years, then my cost will be negligible. My cost are fixed to the day I started my mortgage while yours will always be indexed for inflation. Your rent will not be the same every month for 30 years.
Seriously though. Do out the math you might pay 100% the price of the home in interest over 30 years but it will appreciate and you'll probably still come out ahead. Now let's look at how much you pay in rent over 30 years for a comparable house. For argument's sake let's say you could rent a comparable house for the same monthly payment as you could mortgage one (you can't), let's use 2,000 a month as the payment (including taxes and HOA) . That's 720,000 dollars that you have literally thrown away if you were renting for a mortgage that would be about a 350,000 dollar home. Worst case scenario when you go to sell it in 30 years you'll get your money back so that cuts your spend to 370,000 vs 720,000 for renting. In reality your house will increase at the very least with inflation, you'll get back far more than the price of the home when you bought it. Your mortgage rate isn't going up every year like most rents do. You're totally at the control of someone else, they can raise your rent every time you sign a new lease with no guarantees of upgrading anything over that period of time. Figure you might need a new roof if you're owning (though in a town house the HOA would cover that) and maybe a new air conditioner, boiler, and other appliances. For an ultra worst case thought say you have to spend even 100k in repairs over 30 years. You're still FAR ahead if you own.
Most people don’t own the same house for 30 years so the example doesn’t really match reality. On average a mortgage is paid off between years 7-9 sometimes by a refinance and others by selling which often results in a new mortgage
No because I’m paying less than a renter per month. I’m the one with the extra income per month and I’m the one guaranteed to be both rent and mortgage free in another few years, then my cost will be negligible. My cost are fixed to the day I started my mortgage while yours will always be indexed for inflation. Your rent will not be the same every month for 30 years.
As an owner your cost to own are never fixed. Please stop with the nonsense
As an owner your cost to own are never fixed. Please stop with the nonsense
Sure they are. I might need a new roof or hvac within 30 years, but I can amortize that into my cost. I can even get a tax deduction on the interest of a home equity line of credit to pay for it if I wanted to. Regardless, it’s a drop in the bucket compared to the equity and appreciation I’m making. In another few years my mortgage cost is reduced to just insurance and taxes so I’m good either way.
Most people don’t own the same house for 30 years so the example doesn’t really match reality. On average a mortgage is paid off between years 7-9 sometimes by a refinance and others by selling which often results in a new mortgage
That’s somebody else’s problem. Buy your 1st house and finance it for 30 years. After 10 years sell it for more than you paid and take your equity and finance your next house for 20 years. 10 years later do it again. In 30 years you paid off your mortgage and lived in 3 houses. Provided you didn’t buy a house and they put a landfill next to it, you’re good to go.
If somebody doesn’t want to take that risk and would rather rent that’s their prerogative, but they will still need to pay somebody for a roof over their head, and they will not be able to take that equity with them when they’re done.
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