Quote:
Originally Posted by Eric Vail
How about some real numbers. I rent a condo out for $1200/month that is worth about $260,000 or so.
So, following your math:
$260,000*.06=15,600 in interest to the bank (+ the equity built up as the property increases in value)
$1200*12=14,400 in rent with no return.
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What if it doesn't go up, but down instead?
What if you bought a year ago and are now "down" 40K or more? It'll take more than a few sleeps to get that money back. Plus ownership includes property taxes and upkeep which could easily add 2-3K a year.
Not direct questions to you, but a few points nonetheless.
Renting makes a lot of sense in certain markets.