Quote:
Originally Posted by retiredguy123
I need to take issue with your post. I have a courtyard villa and my monthly cost to move into The Lofts would triple. I have done the math down to the penny, having lived in the villa for 7 years. The costs you cited are all included in my calculations. I pay someone to do all of the landscaping, so I have no maintenance work. My total cost per month for all of the things you mentioned is less than $900 per month, not $1,000 plus. Yes, you do earn interest on the money in the villa, but, you need to also consider the annual increase in the value for the villa, which is a wash at best. Also, the interest on the value of the villa is taxable income, but the income from an increase in the value of the villa is tax free because it is your primary residence.
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That $900/month doesn't include the purchase price of the home. Not everyone can afford to pay cash for a house. Some people mortgage their homes. You have to build that into the price when you're comparing to rental properties. How much would it cost, monthly, to pay premiums and interest for a 15-year mortgage, compared to how much it'd cost monthly to pay for rent.