Quote:
Originally Posted by Konda
If she'd rent a place she would be putting for example $1000 a month in something she doesn't own. That's $12,000 a year. in 10 years that's $120,000 wasted in rent.
If she'd buy something for like $250,000 and lives there for 10 years it would never drop $120,000 in value + there is a quite a big chance prices will eventually go up again.
Even if the economy is bad, it's still always better to buy than to rent, especially if you plan to live in the same place 10 - 20 years.
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You have valid points, however what about closing costs, property taxes, insurance. maintenance etc. That adds up big time. From what I have seen you can rent for about 30% less than a new mortgage payment as property taxes, insurance is not a consideration, ad that's not including maintenance. In the last 5 years homes in orlando have depreciated on average 6.53%, the last year it was 7.12% and this last quarter is on track for it to be 7.29% for this year. So from what I see it's not getting better, actually worse. She's only doing 5% down, so when I look at amortization tables I'm seeing that the principal she will have in 10 years is far less than what the house will be worth if this depreciation does not reverse and soon.