Quote:
Originally Posted by Tyler
People are under a bit of an illusion that after you pay off your mortgage, there are no housing costs.
You're still going to be responsible for
Home Insurance
Property Taxes
Maintenance Costs
Utilities
etc
All of this probably still adds up to $1000+ a month for most people, even if they have a paid off mortgage
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1. Many renters pay utilities. You need to get renters insurances if you rent.
2. Factor in the cost of moving every few years to renting.
3. Most landlords do not put any kind of upkeep into a place while it has an active tenant. Be prepared to live in a place that becomes increasingly run down as you rent it.
4. The only significant cost of those you've listed is maintenance. That's more of a cost to maintain an asset. Even then, the average owner does not pay $1,000/month to maintain a property, unless it's a very large one, in which case you'd be paying significantly more to rent it.
5. As I stated before, rent always goes up over time.
At the end of the day, all the wealthy people I know (who didn't land it big with some lucky internet site) are people who own multiple properties. Owning property is always a great investment over time, unless you're in the next Detroit.