Steve A. • January 3, 2019 • Newsletter, Real Estate
Last modified: May 4, 2019
Always interesting to read these breakdowns as I do agree that homeownership is a lot more expensive than many let on or realize. When you compare this to a townhome / condo, the costs could even be more given that you may shell out $3k+ a year for your association dues on top of what interior repairs you may have.
Many good points made, especially about the opportunity cost of the money that could have been invested.
Currently renting in expensive part of CA, and not sure if buying will ever be the right decision financially. Mortgage alone would be 1.3-1.5x the rent we pay, can’t imagine what it’d be after factoring all the costs above. Would expect higher maintenance too in the 1970s-era houses.
Owning can be the right decision for several other reasons, but I think you really have to stay in the house well over the standard 5 years to break even financially, more like 15-20 years (possibly never better if you always invest the difference because you prefer flexibility).
Wow, I’d never considered all of that. Well, I’m in my early 20s, and homeownership isn’t quite on my radar yet…
Your email address will not be published. Required fields are marked *
This site uses Akismet to reduce spam. Learn how your comment data is processed.