Quote:
Originally Posted by Johnny199r
Aren't there still property taxes, maintenance costs, insurance costs when you own a home? Do those diasappear when the mortgage is paid off?
I like the freedom renting brings. It doesn't cost me anything to move beyond renting a uhaul and buying some pizza. I know that buying/selling a home will cost a lot more than that just to the realtor. Lots of people own more than one home in their life, think how much money they paid to a realtor for the privilege.
The houses in the area I live in are around 600k-1.2 million. I get to live in this nice area with amenities like shopping and bike paths area without having to shell out serious money to do so. That's a huge win in my books.
Most of all, if someone invests wisely, the opportunity costs of having money tried up in a mortgage vs being in the markets is a huge hit. I have about 800k in the market rather than buying a house. I haven't seen any properties that have matched the historic annual returns of the S&P 500 of 10% over the last century. My decision to rent has me way ahead of where is be if I bought a house. I'll take early retirement and living on the beach somewhere at 55 while my investments continue to grow, but that's just me.
Does anyone here know anyone who bought a home in Calgary 25 years ago for $150,000 that's now worth $1.6 million, without renovations they would have paid for? That's a 10% annual return.
Again , if people have kids and want a big yard and lots of room, I get it. You want to make sure little johnny or Sally will never have to switch schools? Sure, Buying makes senses. But the financial argument of doing better by owning a house is nonsense.
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You can own and invest. Your 1800 rent isn't providing you any real savings over what a mortgage would be. In normal times rent is more than a mortgage for the same place. It isn't like that right now because of the market, but over time that's what it will be.
And yes there is maintenance and property taxes. And there is appreciation that more than makes up for that.
And your $800k in investments is kind of weak for a 37 year old CPer. We set standards way higher than that on here 😂