If you're paying $2,200 per month in rent and see a similar place you could buy with a $2,200 mortgage payment, it's easy to wonder why you're still renting. Say $1,500 of that mortgage payment goes to interest in the first month. The other $700 pays down the loan. If you started with the interest and added property tax and a bit for repairs, how would that number compare with your rent? If renting cost less, where would that money go each month? I ran the numbers on a $500,000 home in the November 5 issue of The Smallbird Brief and put the link in the first comment.
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3 Comments
Angela
@gingerghost18 · 33m
Yup….never forget about those repairs! There’s always a large expense lurking around the corner, a new roof, or an unexpected water leak in the wall that requires home insurance to repair;-) And land taxes (at least in BC) are large enough that you need to budget for them. 🫣 I owned two homes for the majority of my life, renting out one. To be fair they were both older homes that created projects constantly. I know that I will own again one day, but hopefully the next ten years I can travel the world washing my hand clean of a pipe bursting while I’m away!😉
Jay
@reachjay · 29m
There are property tax and home insurance + maintenance to be considered for ownership vs rent
