/biz/ - Business & Finance

Every year, your rent goes up while my interest paid goes down

Every year, you worry about your landlord renewing your lease, or having to find another place, while no one can kick me out

Every year, I gain equity and get to deduct my property taxes + mortgage interest paid while none of your rent is deductable

I can leave whenever I want and have someone pay rent and also deduct depreciation and any maintenance/repairs. A/C goes out? Roof needs replacement? It's a tax deduction if the property is rented

Only retards rent

>>57486784
>renting is cheaper for the moment

Your house gains a minimum of 2% equity each year. On a 400k house, that is 8000/year.

You get to deduct mortgage interest and property taxes. At a 6.5% mortgage, that's 20,694 in mortgage interest and then roughly 4,000 in property taxes. The standard deduction is 13,850, so you get to take an additional 10,844 in deductions. This is worth roughly 2500/year.

So your rental payment needs to beat the mortgage payment by 875/mo to be even, although rent prices will increase over time.

Rent never goes down

>>56496930
Renters are impulsive and want immediate gratification. They spend everything that they earn. They look at things in terms of monthly payments with no thought as to how their long term finances are impacted.

>i'm only paying 2200/mo to rent the house
>why would i buy a place for 2500/mo?

It doesn't go through the mind of a renter that their rent will eventually be increased. They don't take into account that their job will always pay them more every year.

They don't think about the tax benefits of owning a home. They don't understand amortization and how each year they pay less interest. They don't know that property tax is capped.

Nothing matters to them other than monthly payments. These are the same retards who lease cars.

>>56439307
>10% down

kek, had to make sure they included PMI to get the calculations to work

only retards rent

>>56408779
Sounds like you missed out. Too bad.

>>56137347
Mortgage payments are fixed, rental payments are not. Rents rise with income. Only property tax can be increased for homeowners, and that's capped at 3% in most areas. If mortgage rates drop, homeowners can refinance to lower rates, lowering their monthly payments. Rent never goes down.

You do an inspection before you buy a house. If the inspection shows the HVAC is old and about to go out, ask sellers to either replace it or provide a home warranty that will cover the cost of replacement. HVAC replacement will be $10,000 and last 20+ years.

Home insurance (required if you are taking out a loan) covers natural disasters (tree falling on roof).