Reply to Is the delta between renting & owning now so high that it really just makes sense to rent?

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Reply to "Is the delta between renting & owning now so high that it really just makes sense to rent?"

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[quote=Anonymous]I’ve done the math, A LOT, on rent vs buy. What I’ve found is: the “cheaper” the home, the more it makes sense to buy. Like the math on a $600K starter home with 10% down is way better than a $1.6M with 10-20% longer term home.

A lot of it has to do with rates, the amt of mortgage taken out, and my perceived “acceptable” monthly. With the starter home, you can very comfortably have a monthly under $4k, vs the forever home at 10% is feeling like $10K which feels absurdly high… so then you start going into 20-30% down. At 30% for a $8k monthly, thats like $500K which is a huge amt of money you are forgoing market returns on.

Now, when you add up the market returns and the fact that you CAN rent a comparable home for like… $5-7K vs the aforementioned $8k (that doesnt include maintenance costs)… there is quite the gap. You would be significantly better off just renting, pocketing and putting the diff in the market, and leaving your massive down payment in the market. You dont really see this dynamic though with that $600K starter home bc youre talking like a $60K down and you dont have a huge spread in renting.  [/quote]

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