Quote:
Originally Posted by OrangeBlossomBaby
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.
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If you read the thread, the scenario we are speaking about is paying cash for a new home vrs investing that cash and rent.
My scenario: Pay $450,000 cash for a home plus closing costs. You still have $1000 a month in fees. (property taxes, insurance, amenity, lawn, maintenance)
Or, invest the $450,000 and rent. The money you earn on the investment can be used to reduce the rent.