Quirky_Butterfly_946 t1_ix0cref wrote
Do people even understand that 5K-6K would buy for a home? I don't understand why people are paying that to rent.
If they can afford that to rent, what are they doing for work? They are blowing their money away paying this. Find a house and your mortgage is money in the bank, it is YOUR MONEY not a landlords.
nicecupoftea02116 t1_ix0kr7n wrote
My personal uninformed opinion is that young professionals with lots of money don't want to live in older houses in outer neighborhoods with charming elderly folks as neighbors.
Charzarn t1_ix0kr1u wrote
Eh, depends on where they want to live. If they can easily afford 5k in rent i don’t think it really matters to them to have a property.
Also 5k rent gets you a much nicer place than 5k mortgage, especially right now with high interest rates.
LocalSalesRep t1_ix0njtt wrote
You’re going to need at least 200k down payment on a 5-6K/month mortgage. That’s a pretty big hurdle.
dbnoho t1_ix102ek wrote
This logic is deeply flawed.
At this point a mortgage on a $1m house is >5k. Buying a $1m home will cost at least 7% ($70k) in transaction costs to buy and sell. Ignore that you need $200k down, cost of interest, opportunity cost of that money, maintenance, location considerations, etc. You’d still need to live in the house for years to even begin for it to makes sense vs renting.
Renting is not throwing your money away.
Quirky_Butterfly_946 t1_ix12m9u wrote
Who said anything about million dollar homes? But, it fits your example so I guess you decided to use it.
And yes renting is a sucker deal
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