Quote:
Originally Posted by justanormalgirl
Thank you for your replies. I can see valid points to consider on both sides. I have wondered how I would feel about leaving a fully furnished home empty for several months of the year while I was at the second home. Owning would make more sense financially, I have cringed at the thought of paying out so much for rent because that money isn't ever coming back.
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It is important to also consider that as a homeowner, you will have expenditures such as taxes, home insurance, most likely a bond payment, utiities, ground and home maintenance, amenities fee, etc. When you rent, those expenses are included, so the cost of the rental may not be as prohibitive as it may appear at first glance. When you own, those costs come out of your own pocket in addition to the cost of a mortgage, if you don't pay in cash. It is also very possible that those costs will never "come back" as you stated with regard to rent. New roofs, water heaters, hvac systems, paint, all add up. When you sell your home, you will probably pay a 5 or 6% commission, which should also be factored into the "home investment" decision process.
The advice we were given was that if you plan to rent for 6 months or more, you would probably be better off buying, and hope that the money you spend on the home will pay off, if and when, you (or your heirs) sell it.