Re: Is my thinking off here? (renting vs owning situation)
Jimbo,
I give up. It is clearly lost on you.
Yeah the numbers are definitely right, the housing market is so overvalued compared to rental prices that I can't see this market not losing value in the future. Even if we assumed historical growth, I think the ~$20-30k in investment income is more than the extra $4k per year in rent. I have to get hard numbers for the cost of maintenance, property taxes, and the savings with the tax-deductible interest. With property taxes likely around 2-3% of the house value and the tax-deductible interest savings probably be less than that (on a ~$400k loan I'd guess), I don't see how keeping the house can be the correct play.
I'll run some numbers next week and post them, but I really must be missing something huge or some of you guys are so dead-set in never thinking that renting can be the better play.
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