|RE: Own vs Rent||<– Date –> <– Thread –>|
|From: Rob Sandelin (floriferousemail.msn.com)|
|Date: Mon, 10 Jan 2000 21:46:47 -0700 (MST)|
Maybe the big difference is appreciation, if it happens. You either pay the landlord or pay the bank. I have read in a couple of places, that unless your real estate market is appreciating more than 15% a year, and renting is 20% cheaper in monthly costs than a comparable mortgage (Around here that's certainly the case) then you are financially better off being a renter, taking that 10% and investing in the S&P500. My house has appreciated $75,000 in 10 years. Over ten years, had I invested the difference in rent vs. home cost in the S&P500 I would be up about $200,000 ahead at this point. Of course, I would not have done that, but thats the argument I always read. But around this part of the world, the financial bar for homeownership keeps getting higher and higher. The median home sale price in my area is $220,000, which would take $22,000 for a down payment and about $1,900 a month in mortgage costs. Rob Sandelin Northwest Intentional Communties Association Building a better society, one neighborhood at a time
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