Now tell me, where do you think the owners got those 20k from to pay for the repairs? The goodness of their hearts? Or your rent? People seriously thinking renting is cheaper need some help, it’s less of a hassle sure and if that’s why you rent go ahead but if you rent because it’s cheaper I suggest you retake first grade math classes because property upkeep + mortgage + rent overhead since owner wants to make money != property upkeep + mortgage. If you are renting you are paying extra, no two ways about it. Unless your credit score is crap you are likely also paying more than if you bought the place entirely on credit (this depends heavily on how the owner financed the place, if they paid out of pocket it might be a bit cheaper to rent whilst the hypothetical mortgage is being paid off).
Only reasons I can think of renting for is A) ease of living: if something breaks it’s not your time spent fixing it. B) flexibility: you can move places faster than if you had to sell the place you’re currently living in first
But cheaper? Yeah no, the math just doesn’t work out on that one.
If you live in a place for 2 years and have to spend $18,000 on a mortgage and $20,000 on repairs, that’s definitely more expensive than just paying $24,000 in rent. Not everyone has $20,000 just laying around to fix stuff. They’d rather spend $20,000 over 2 years going on vacation, eating out, or having fun.
since owner wants to make money
You mean, earning money from their job (managing the property). It’s not free money, it’s their income. Just like other people get a paycheck from a regular job, landlords are just self employed. Running your own business might mean not taking a lot of pay (or no pay) some years.
So the 18k for the mortgage just disappear when someone else owns the place? Do you even listen? Unless you’re renting from a corporation (in which case the rent is not going to be cheaper anyway, they’ll just make more profit) the landlord is paying that same mortgage (maybe only 17k since they have a longer history with the bank). You’re not getting out of this cheaper. Any cost you might have with a house the landlord has as well, at best they get a better credit from the bank but overall the difference is so miniscule it doesn’t balance out the cut they add for themselves onto the rent.
Regarding your second paragraph see my list of reasons why you might legitimately rent. If the saved time is worth it for you then that is absolutely valid but don’t delude yourself into thinking it’s cheaper.
The point is that it doesn’t matter if the landlord pays the mortgage or you pay it it is still there. And if the landlord pays it you can be damn certain it’s gonna end up in your rent calculation.
Now tell me, where do you think the owners got those 20k from to pay for the repairs? The goodness of their hearts? Or your rent? People seriously thinking renting is cheaper need some help, it’s less of a hassle sure and if that’s why you rent go ahead but if you rent because it’s cheaper I suggest you retake first grade math classes because
property upkeep + mortgage + rent overhead since owner wants to make money != property upkeep + mortgage. If you are renting you are paying extra, no two ways about it. Unless your credit score is crap you are likely also paying more than if you bought the place entirely on credit (this depends heavily on how the owner financed the place, if they paid out of pocket it might be a bit cheaper to rent whilst the hypothetical mortgage is being paid off).Only reasons I can think of renting for is A) ease of living: if something breaks it’s not your time spent fixing it. B) flexibility: you can move places faster than if you had to sell the place you’re currently living in first
But cheaper? Yeah no, the math just doesn’t work out on that one.
If you live in a place for 2 years and have to spend $18,000 on a mortgage and $20,000 on repairs, that’s definitely more expensive than just paying $24,000 in rent. Not everyone has $20,000 just laying around to fix stuff. They’d rather spend $20,000 over 2 years going on vacation, eating out, or having fun.
You mean, earning money from their job (managing the property). It’s not free money, it’s their income. Just like other people get a paycheck from a regular job, landlords are just self employed. Running your own business might mean not taking a lot of pay (or no pay) some years.
So the 18k for the mortgage just disappear when someone else owns the place? Do you even listen? Unless you’re renting from a corporation (in which case the rent is not going to be cheaper anyway, they’ll just make more profit) the landlord is paying that same mortgage (maybe only 17k since they have a longer history with the bank). You’re not getting out of this cheaper. Any cost you might have with a house the landlord has as well, at best they get a better credit from the bank but overall the difference is so miniscule it doesn’t balance out the cut they add for themselves onto the rent.
Regarding your second paragraph see my list of reasons why you might legitimately rent. If the saved time is worth it for you then that is absolutely valid but don’t delude yourself into thinking it’s cheaper.
If it’s at the beginning of the mortgage, most of that is interest because interest is front loaded.
What’s your point here?
At the beginning of a mortgage you’re really not gaining much equity if that’s that your prior comment was about.
The point is that it doesn’t matter if the landlord pays the mortgage or you pay it it is still there. And if the landlord pays it you can be damn certain it’s gonna end up in your rent calculation.
Well obviously, they aren’t going to work for free.