Originally Posted by JCHouseHunter
Yea, my agent just quoted me at $1,500-$2,000 a year for the average cost of condo insurance in Dallas, but I'm sure your knowledge is above his
Essentially, from a financial standpoint, there's no reason for me to purchase
I currently rent a modest 500 square foot place that is fine for me, at $1,000 a month all in factoring rent, utilities, and insurance.
To get any sort of property, we're first looking at about $500 a month in taxes, and another $200-$250 increase in insurance. Factor in any associated HoAs, and I'm throwing away between $750-$1,000 ish a month in fees.
Now we factor in the $500-$750 ish in interest on a mortgage, and I'm essentially wasting more a month on non principle than what I currently pay in rent.
Dollar for dollar, continuing to rent until I have a need to move (job, marriage, market downturn, etc.) is the better option
Think of it this way: I could pick up a $2K payment a month all in factoring in taxes, hoa, insurance, P&I, and out of that around $350-$550 goes towards principal the first 10 years - the rest is thrown away, and the rest is more than my current rent by far
Essentially, I'm living for free right now compared to moving into a home, which would cost me an extra $450-$650 all for the benefit of gaining around $450 in equity a month
"But JCHouseHunter, you're forgetting the tax breaks!" - eh, probably comes out a wash compared to maintenance and repairs which I currently don't pay for
Continuing to rent seems vastly superior
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