Compare mortgage payments to rents in your area. When you own, you pay property tax and all repairs as well.
It's also good to check appreciation in your area, historically, I mean.
My property value has doubled since I bought it. When I bought it, my rent was around what I was paying in total for mortgage, strata fees, insurance etc. But my rent now would also be double. So in my situation I not only have a shitload of equity, but I'm paying less housing costs as well.
I live in a high cost of living city, so this isn't for everyone
I'm in a similar boat. I purchased this house somewhere around 6 years ago, and it's doubled in value. Rents have also more than doubled if you can even find a place. I live in the sticks in a town of 2600 people. I would have a hard time affording rent, but I have no problem paying an extra $400/mo on my mortgage.
Same here, my area in Texas home prices are ridiculous, just outside a large city.
Exactly, and that's very tempting (renting), a lot of upside.
I mean, if you had a wad of cash, would you rent and use the cash to live on, if you'll be dead in 25 years?
Especially if you had three or four other streams of income (spouse salary, social security, commission from a business)?
I dunno.
(post is archived)