I ran a spreadsheet and it's much costlier for me to buy than to rent. 3/2.5 in the East Bay, California Rent: $X/year Identical floorplan comp in the same neighborhood: Buy: $3.3X/year for mortgage, taxes, repairs, etc Tax benefits of buying ~ 0.3X Cashflow of buying: $3X I rent and stick twice my rent in the stock market and there's no way leveraged housing returns can touch it. It's just not even close. And on top of that, I can't access housing returns very easily. But I can get to my stocks if I need them.
What do you guys think? How do you feel about homeownership in 2024?
I ran a spreadsheet and it's much costlier for me to buy than to rent.
3/2.5 in the East Bay, California
Rent: $X/year
Identical floorplan comp in the same neighborhood:
Buy: $3.3X/year for mortgage, taxes, repairs, etc
Tax benefits of buying ~ 0.3X
Cashflow of buying: $3X
I rent and stick twice my rent in the stock market and there's no way leveraged housing returns can touch it. It's just not even close. And on top of that, I can't access housing returns very easily. But I can get to my stocks if I need them.
Definitely a better investment! Sounds like you know your stuff! 🙌🏼
You'll own nothing and be happy. So nobody sees the connection???
Who knew minimalism would take such an extreme turn? 😉