• quo@feddit.uk
    22·
    11 months ago

    Yeah, for a decision this big people consider all the pros and cons of both. The previous commenter never mentions:

    • Accumulating interest on a half a million dollars starting the first month, at a time of high interest rates.

    • Paying property taxes, even after it’s paid off.

    • Higher insurance costs

    • Sacrificing promotions and raises in a career because you’re stuck in one place.

    Often it still makes sense to buy a home, but not always. A proper calculation means subtracting these from the equity being built to get a proper net change in wealth.

    • Patches@sh.itjust.works
      6·
      11 months ago

      You are always paying property taxes forever. You are also always paying the owners insurance policy. How are either cons?

      The landlord is not going to pay either out of the kindness of their heart. It’s in your rent. And then you have to buy additional renters insurance - if you want that.

      So it comes down to moving being expensive if you want to, or have to. And it makes more sense to store the million your pops gave you in the stock market.

      • quo@feddit.uk
        3·
        11 months ago

        Sometimes they do charge you less, because they can’t find anyone to cover their investments completely. They prefer to recover 80% of their investment, rather than 75 or 0. That’s less common today, but it happens in normal times.

        Not being able to move for work could end up costing a lot more than the lost equity building, depending on your career and if you have to stay in town for family reasons.

        There also bulk rates for the manager and economies of scale in apartments that make them cheaper.

        The current rate hikes did change the logical financial decision for some people. It’s not always best to buy, it depends on many factors.