Reply to How much can we afford to spend on home?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]For those arguing about whether a home is an investment or not, I recommend checking out this calculator: http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0

It compares renting to buying, and has a number of factors you can change.

At a home price of $800k, renting is better (after 9 years) if you can rent at $2,686 a month or less (to begin with, it factors in inflation). That's with default values, so you may find the answer change significantly with specific inputs that fit your case. [/quote]

Problem is that rent has always gone up for us at a rate much higher than inflation.  Now we own a three bedroom plus basement for a 3500 mortgage.  Our home was in the 700s.  Our one bedroom with garage parking was the same amount and we couldn't write off mortgage deduction.   In nine years, the rent will be way way more. Our rent would have increased probably 300-400 in just one year.

I don't know where you can find a rental for a family in DC for 2686 a month!  And a rental that only increases 3-4 percent a year.  [/quote]

All the assumptions can be changed by the user - one reason I like that calculator so much. :)

I definitely didn't share it with the intention of saying &quot;you should never buy&quot; or the like, just that it takes many factors into consideration that people were arguing about, including several factors no one mentioned.

3-4 percent a year rent increase may be accurate in the long term, though, if not the next few years. An increase of &gt;=5% each year is not sustainable in the long run (over ten years). [/quote]

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