Quote (Subzer0isGG @ May 5 2015 09:36pm)
uhhh how the hell do you do that when you're renting for 1200+ a month. and only make on average....3k per month?
you crazy!
renting is like flushing 1200+ money down a toilet each month
paying a mortgage is like putting 1200+ into a 'bank' each month.
don't wanna drag this out too long but
you don't just show up and put 1200/month versus 1200/month in rent and suddenly own a home, you actually need down payment
so let's assume you're buying like a 400k property and you need 20% down, that's 80k, then based on mortgage rates you'll incur additional costs over the years on top of taxes and maintenance costs
also more likely than not your monthly mortgage payment will be higher than what a typical renter would pay for rent
the renter invests the extra cash in an incredibly safe investment portfolio with a modest return of say like 5-6% and they'd come out to be pretty even
of course this all depends on mortgage rates (low now, and market returns - very unpredictable)
the advantage of the buyer is you are essentially forced to save your money that you'd otherwise spend if you're renting, but if you don't splurge the additional cash it's not always a "renting is a waste of money" scenario
if you guys actually want to see math here's a sample link:
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/a-financial-comparison-of-home-ownership-and-renting/article11952272/?from=11952313there's also an article that explains it in more detail :
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/would-you-be-better-off-financially-renting-or-buying-a-home/article11952313/there's also plenty more sources that you can easily find when you google renting vs owning
but it's not as black and white as you guys might think