/biz/ - Business & Finance

>>28186288
I did a quick shitty spreadsheet a few weeks back while looking at exactly this. Numbers were based on a $339,000 condo I was looking at buying with a $50,000 down payment. Included taxes, mortgage interest, and building maintenance fees, but obviously not personal maintenance shit like my fridge breaking or toilet clogging. Compared it to the rent I'm paying for a similar condo unit.

Each cell on the left is my net worth each year. Current savings of 36k + income - rent/mortgage - other monthly expenses * 12

TL;DR Buying plays out better long term, and pays off better the faster you can pay down the mortgage. Big question is whether you can take the $4k savings per year, and invest it in a way that gains you more than the property + it's appreciated value. Assuming a 2% appreciation on the property, in 25 years, a $340k property would be worth $557k, and if you had been renting you'd have saved $100,000. You keep more cash in your pocket to play with if you rent, but renting never stops. You're footing a monthly bill til you die. Once you run down a mortgage, it's all in the green and it only takes a few years past the end of the mortgage to start catching up to the "renter".