/biz/ - Business & Finance

>>57708308

Over the life of the mortgage the total cost is around 1.3 million if you count maintenance and HOA. If you rend and invest the difference you will have around 1.5 million.

So unless the house does 3X over the life of the mortgage you're fucked.

Ok here's more context:

If I have an $80,0000 down payment and I buy a $400,000 house at current rates I will pay:

>320k principle
>462k interest
>5k annually for property tax and insurance for 30 years for an extra 150k
>extra 100k to maintain home/hvac/roof
>extra 50k for HOA fees for 30 years

If I buy an average home now I will pay around 1 million dollars over the life of the loan.

If I was to take my 80k down payment and put it into tame bonds making 6% for 30 years and add the $1000 I save from renting to the investments I will end up with positive 1.5 million.

Unless I am dead certain that my home will appreciate to over 1.5 million I would be a fool to buy at this time.