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http://www.supermoney.com/2014/05/home-ownership/
Genuinely interested in hearing the community's feedback and discussion about that topic.
- You are correct about investing in properties as pure long-term investments vs stocks/bonds/etc. While mortgage may seem better, it is a singular point of investment, while stocks/bonds/etc allow you to diversify.
- Mortgage payment is always WORSE in the short term compared to rent payment. However rent goes up, and unlike mortgage is not fixed. So while I may be paying $1000 in mortgage but only $800 in rent, in ~ 10 years I will be paying $1000 in mortgage and $1300 in rent. And in 20 years, etc. - You are correct about investing in properties as pure long-term investments vs stocks/bonds/etc. While mortgage may seem better…
- Mortgage payment is always WORSE in the short term compared to rent payment. However rent goes up, and unlike mortgage is not fixed. So while I may be paying $1000 in mortgage but only $800 in rent, in ~ 10 years I will be paying $1000 in mortgage and $1300 in rent. And in 20 years, etc. - You are correct about investing in properties as pure long-term investments vs stocks/bonds/etc. While mortgage may seem better…
I'm not sure the quality of what you get for $850 a month is the same as a 290k house. For 290k you could easily afford double and rent one side out for $850. $966 of your monthly payment in the beginning is interest with a deduction. So if your in it for the money buy a double rent it out: you'll still have the money to invest in the market. plus your taxes deduction of about $400 a month. .
- Mortgage payment is always WORSE in the short term compared to rent payment. However rent goes up, and unlike mortgage is not fixed. So while I may be paying $1000 in mortgage but only $800 in rent, in ~ 10 years I will be paying $1000 in mortgage and $1300 in rent. And in 20 years, etc. - You are correct about investing in properties as pure long-term investments vs stocks/bonds/etc. While mortgage may seem better…
Mortgage is not always worse then rent. I'm saving about $200 a month including taxes by having a Mortgage instead of renting a comparable place. It depends on the area and what you are looking for.
"There are many mistakes that people could make that would cause their real estate investment to be a less than favorable one. Rushing into home ownership, buying in a region that is failing economically, getting sucked into a loan that is less than optimal, or even being uneducated or less informed about your options could result in a negative outcome."
Saving $200 on your mortgage!? Where do you live?
I'm not sure the quality of what you get for $850 a month is the same as a 290k house. For 290k you could easily afford double and rent one side out for $850. $966 of your monthly payment in the beginning is interest with a deduction. So if your in it for the money buy a double rent it out: you'll still have the money to invest in the market. plus your taxes deduction of about $400 a month. .
Earlier quoted context omitted.
Mortgage is not always worse then rent. I'm saving about $200 a month including taxes by having a Mortgage instead of renting a comparable place. It depends on the area and what you are looking for.
The article is using median numbers. There are of course regional differences in real estate investment and I was thinking about doing a follow up article on that specifically. I tried to somewhat address this by saying "There are many mistakes that people could make that would cause their real estate investment to be a less than favorable one. Rushing into home ownership, buying in a region that is failing economica…