• min@lemmy.sdf.org
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    1 day ago

    Taxes and maintenance wouldn’t be included in the mortgage. A new roof is expensive, so are HVACs, floors, etc. These things will need to be replaced. A rule of thumb is to budget 1% to 4% of the total house value per year. For a 400k house that could be up to $16k extra per year, or $1333 more per month than your mortgage. Those costs for maintenance and taxes don’t go towards paying down your principal so they aren’t directly gaining equity. With the rent and invest option, the investing is the counter to equity. When you sell your house you usually pay a realtor commission. There are a lot of factors to include when seeing if rent & invest is better than mortgage & buy.

    That being said, I prefer to buy. I don’t plan on moving anytime soon.

    • village604@adultswim.fan
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      23 hours ago

      People who don’t own homes don’t understand just how expensive and time consuming it can be. And most of that money and work doesn’t go towards building equity.

      • CileTheSane@lemmy.ca
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        17 hours ago

        The maintenance and taxes on my home are far cheaper then rent in my area. I could not afford to rent the home I own.

        People don’t understand that a landlord is going to charge enough rent to cover all those costs and still make a profit. Otherwise they would just sell the home.

        • village604@adultswim.fan
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          16 hours ago

          Yes, the landlord is going to make a profit, but that’s going to be true of literally any service that’s being provided by a private entity, especially when they’re carrying a large amount of risk.

          But it’s disingenuous to claim that there’s no benefit to tenants in a rental situation. They don’t have to worry about having to unexpectedly drop $30k on a new roof or HVAC system, or finding and dealing with contractors to do maintenance (or finding the time and energy to do it themselves).

          • CileTheSane@lemmy.ca
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            12 hours ago

            In the house I own yet could not afford to rent I have no issue with those unexpected costs because I am able to save the money that is not going to a landlord in order to pay them.

            The renter is paying for the cost of a new roofer or HVAC system anyway, whether the home ends up needing one or not, and they have zero say in how or when it happens.

            • village604@adultswim.fan
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              1 hour ago

              What you’re not getting is that’s a plus to some people. They don’t have to worry about budgeting and all of that.

              Just because you don’t get anything from a rental situation doesn’t mean no one can. I absolutely know people who have sold their houses and went back to renting because they were tired of the hassle of home ownership.