Hidden Costs of Owning a House

[leely]

Hated renting and having to move constantly because landlords needed the property back. Rent is going up every year too! There’s stability in owning a home. Just know your numbers. Owning a home works for some.

[ccthecoach]

Appliances. Property taxes. Lawn care. Oh my! But other factors like appreciation, equity you can borrow from to invest, and the extra money when it’s paid off.

[dgottis]

Indeed, the rent versus buy calculation has swung heavily in favor of renting as interest rates climbed. But the folks who got in when mortgages were sub-3 percent have generally done really well compared to those who have been renting, especially if they’ve stayed in their purchased homes for 5-10 years and bought in a big American city.

[JSLReview]

I pay around 1100 dollars a month just in property taxes on top of my mortgage🤦‍♂️

[susanacaballeromoreno]

I can't argue this is totally true in North America but I live in Colombia, the inflation has been crazy lasts years so rent costs has increase 24% in 3 years while my mortgage is fixed cost. Ownership is definitely expensive but I'm in fact increasing my assets plus not all of us have the discipline to invest what we save by renting, I think that's the catch 😅

[mattmedwards]

Get the house with the $1600 mortgage.

[buyerclub]

Guess I didnt convince you this morning. But when you bring up a mortgage, at least say its with 10% down or something like that.

[OhyeahImFine]

So how can the landlord stay in business if not passing those phantom costs on with their profit margin.

[lylan]

unless ur multi millionaire renting will leave u homeless in the long run. don’t listen to him

[sihr]

Totally believe on this and I probably have the REVERSE problem…how to calculate at which point you’re loosing by renting?

[utorrent]

Rent = 100% you are just paying as interest and never anything on principle. Also the interest always goes up.

Mortgage = maximum interest $ to minimum over the period. And you also pay towards the principle

[latimer]

If we assume a 50% TCO (which is extremely variable depending on what you include in those costs), a 2k house costs 3k per month. That's just over 1M in 30 years (assuming you take your time). 300k of that is in non-mortgage costs.
If you rent for 2k for 30 years, you spent 700k+/-. Of course, that doesn't include annual increases that will eventually double (+) your rent.
You can sell your home at certain points and recoup your mortgage costs. At the end, your payment disappears and only maintenance remains.
There is a very strong argument for home ownership, provided that it is the lifestyle you want. If you'd rather rent, just be prepared to pay the cost, long term.

[yukitamura]

And no to your statement

If you were market to purchase a house back in 2012 with interest for 3%, you probably bought a house like we did. Our house is now 3 times more than what we paid. And we have less than 5 years for our mortgage. To pay off.

[MKK-wgfz]

There is a lot to be said for the forced investment aspect of buying a home. Some people just have no discipline and live paycheck to paycheck despite having a good salary. Owning forces them to put their money into an appreciating asset. I know some people who are going to blow all their money by the end of the month no matter what. At least their net worth grows because of the house. 😒

[jaj]

Rent goes up and utilities. If u own u can sell. U will get tax money back. It's an investment. 10 years u might get double. Rent u will never get back

[donatelloslappafello]

Its not phantom costs when you expect to spend for things. Im trying to imagine what kind of person buys a house and doesn't consider that it needs maintenance. Have a house fund, Know how long things last and learn to take care of things. Roofs last on average 20/25 years. Maybe plan on replacing it someday? Its like anything you own. A bicycle needs maintenance, car, anything. Do you drive around until your tires explode than realize oh dang i need tires? I suppose some people do

[MrConsto]

Actually my rent was $2, 400 per month and was about to go to $3, 000+ at lease renewal

And the mortgage for a slightly bigger square footage house was $1, 600 per month

I also ended up needing to move 3 months later and when the lines were drawn after improvements, taxes, capital gains, fees et cetera I made a $40, 000+ profit

[Bozzyman]

I don’t know about this one chief, rent prizes constantly go up and at least if you buy a house, you own it eventually

[laundrygoddess]

Need to factor the savings when the house is paid off and you're living mortgage free. Factor that in and you'll come out ahead with buying

[Jacob]

Idk what this guy is on about bought my house at 19 it’s paid in full at age 28 it’s infinitely more cheaper to buy a house I don’t even have bills anymore besides internet and car insurance