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I didn't say that it was actually free,I said being able to deduct most of your shelter expense,especially when the total is the same or less than you would pay in rent anyway,is preferable to paying rent and getting no tax benefit whatsoever.You have to pay to keep a roof over your head one way or another.
Additionally,with 30 year mortgages, you lock in largest part of your shelter expense for the term.Renting leaves you subject to ever escalating monthly rent.The rent on an apartment identical to mine ,which is currently a little less than 1,500/mo might easily be 5,000 or 6,000/mo or more in 20 years.And at the end of the mortgage,the largest part of your shelter expense disappears.Renting dooms you to paying that ever escalating rent until it's time for the grave.
It just makes no sense to rent something when you can buy it for the same or less per month ,get to deduct most of it ,lock in a very large part of your shelter expense for decades and eventually eliminate that large part of your shelter expense, no matter how sick it makes you that all that interest money is going to a bank.It's better than the alternative and it should make you a lot sicker to pay all that rent to someone else and realize that in your old age you might be paying 10x in rent what you pay now.
I didn't say that it was actually free,I said being able to deduct most of your shelter expense,especially when the total is the same or less than you would pay in rent anyway,is preferable to paying rent and getting no tax benefit whatsoever.You have to pay to keep a roof over your head one way or another.
Additionally,with 30 year mortgages, you lock in largest part of your shelter expense for the term.Renting leaves you subject to ever escalating monthly rent.The rent on an apartment identical to mine ,which is currently a little less than 1,500/mo might easily be 5,000 or 6,000/mo or more in 20 years.And at the end of the mortgage,the largest part of your shelter expense disappears.Renting dooms you to paying that ever escalating rent until it's time for the grave.
It just makes no sense to rent something when you can buy it for the same or less per month ,get to deduct most of it ,lock in a very large part of your shelter expense for decades and eventually eliminate that large part of your shelter expense, no matter how sick it makes you that all that interest money is going to a bank.It's better than the alternative and it should make you a lot sicker to pay all that rent to someone else and realize that in your old age you might be paying 10x in rent what you pay now.
That's true, plus you have nothing to sell. Like leasing cars all the time. You have no real property, just rentals.
I didn't say that it was actually free,I said being able to deduct most of your shelter expense,especially when the total is the same or less than you would pay in rent anyway,is preferable to paying rent and getting no tax benefit whatsoever.You have to pay to keep a roof over your head one way or another.
Additionally,with 30 year mortgages, you lock in largest part of your shelter expense for the term.Renting leaves you subject to ever escalating monthly rent.The rent on an apartment identical to mine ,which is currently a little less than 1,500/mo might easily be 5,000 or 6,000/mo or more in 20 years.And at the end of the mortgage,the largest part of your shelter expense disappears.Renting dooms you to paying that ever escalating rent until it's time for the grave.
It just makes no sense to rent something when you can buy it for the same or less per month ,get to deduct most of it ,lock in a very large part of your shelter expense for decades and eventually eliminate that large part of your shelter expense, no matter how sick it makes you that all that interest money is going to a bank.It's better than the alternative and it should make you a lot sicker to pay all that rent to someone else and realize that in your old age you might be paying 10x in rent what you pay now.
i think we agree on most points but my comment to the OP was that if the monthly cost in buying minus payments on principle is more than renting, one should not buy but save more on down payment so that the math make sense. if your mortgage loan is $100k at 3.5, your monthly payment is $449.04 and the payment toward your principle is only $157.38. Let's say your property tax is $300 a month and you have a maintenance fee of $700. That's just $1291.66 down the drain. If you can rent for $1100 for the same size place, you are better off renting and save for so you that you can make a bigger down payment so the costs makes sense.
In addition, when buying, there are added expenses such as a clogged toilet and a boiler that might need to be replaced. When renting, dont need to worry about that. I am not saying one should not buy, but should only buy when the math is right.
That's true, plus you have nothing to sell. Like leasing cars all the time. You have no real property, just rentals.
Not really comparable because cars go down in value over the long term, whereas houses tend to go up over the long term. Car leases can make sense, epsecially if you want a new car every 3 years and the lease price is calculated properly to reflect the reduction in value of the car over that 3 years.
i think we agree on most points but my comment to the OP was that if the monthly cost in buying minus payments on principle is more than renting, one should not buy but save more on down payment so that the math make sense. if your mortgage loan is $100k at 3.5, your monthly payment is $449.04 and the payment toward your principle is only $157.38. Let's say your property tax is $300 a month and you have a maintenance fee of $700. That's just $1291.66 down the drain. If you can rent for $1100 for the same size place, you are better off renting and save for so you that you can make a bigger down payment so the costs makes sense.
In addition, when buying, there are added expenses such as a clogged toilet and a boiler that might need to be replaced. When renting, dont need to worry about that. I am not saying one should not buy, but should only buy when the math is right.
Oh,Ok. I thought you were saying that just the idea of all that interest over the life of the loan was enough for you not to buy at all.
In my case,I bought a 160,000 apartment and put down 20% so my loan payment is about 560/mo and my
co op maintenance is 600/mo.So my total is 1160/mo.About a month ago the building's sponsor rented the last unsold apartment in my line in the building,2 floors up from me,for 1375/mo, so I know exactly what my apt is worth on the rental market.
So,in my neighborhood it makes absolutely no sense to rent unless you don't have the downpayment ,which I guess is the case for a lot of people.When I bought my apt just a few years ago the rental value of it was only about 1,100/mo but the huge increase in rents has definitely tipped the balance to favor buying.
That's true, plus you have nothing to sell. Like leasing cars all the time. You have no real property, just rentals.
Car might not be the best analogy. Most cars are depreciating assets unless you have like a very exclusive car or something. Some may even argue leasing a car is better since you get to have a brand new car every few years...
$80k is a pretty good salary though- would he qualify for affordable housing?
The thing is that most affordable housing programs say that you have to pay 30% of your income to rent. So that's about $2,000 a month, which you could realistically find a decent place in NYC.
Car might not be the best analogy. Most cars are depreciating assets unless you have like a very exclusive car or something. Some may even argue leasing a car is better since you get to have a brand new car every few years...
Yes, maybe not the best argument. Hey, that's life lol
Oh,Ok. I thought you were saying that just the idea of all that interest over the life of the loan was enough for you not to buy at all.
In my case,I bought a 160,000 apartment and put down 20% so my loan payment is about 560/mo and my
co op maintenance is 600/mo.So my total is 1160/mo.About a month ago the building's sponsor rented the last unsold apartment in my line in the building,2 floors up from me,for 1375/mo, so I know exactly what my apt is worth on the rental market.
So,in my neighborhood it makes absolutely no sense to rent unless you don't have the downpayment ,which I guess is the case for a lot of people.When I bought my apt just a few years ago the rental value of it was only about 1,100/mo but the huge increase in rents has definitely tipped the balance to favor buying.
i am in a similiar situation as I am looking to buy a 2bd co-op in bayside
renting such a place should be anywhere around $1500-$2000
i am calculating my mortage and maintenance to be about $1500-$1600
in my case, it would make sense to buy
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