/biz/ - Business & Finance

>>18036014
Where were you when anon dropped the sound of cooming?
I was there man.

I was there, man.

>>990215
>>990263
>>990268

My condo as an example to compare rent vs. own:

Rent: $2350-2650/mo (we'll go with $2500 to keep it simple)
My monthly liabilities as owner: $2535/mo

Breakdown:
Mortgage (30y): $1700/mo ($550p, $1150i)
Taxes: $300/mo
COA Dues: $500/mo (fml why did I buy a condo??)
Insurance: $35/mo

Tax Writeoff: $1450/mo
Tax Bracket: 33%
Writeoff Benefit: $475/mo

Monthly Net from Ownership: ($2535) + $475 + $550 = ($1510)
Monthly Net from Rental: ($2500)
Ownership/Rental Expense ratio: .60

Maintenance will have to exceed an annual average of $12,300 for renting to cost less.
The longer you own the property, the more money is applied to principal.

>but what about lost gains on your 20% down payment?
For every 10% you would make investing that 20% down payment, the value of your home would need to increase 2% to break even.

Your rent can increase every year! Similar percentage increases in taxes (unlikely and partially subsidized by writeoff), COA dues (more likely), and insurance (unlikely) has a much lower financial impact.