alt Hacker News> It will cost you 35k a year
> If instead you rent it for 20k a year
Some good numbers, but what is missing is the result of investing $35k-$20k=$15k per year. Let's say you earn a %7 real return on $15k/year invested for 60-25=35 years.
Writing a little program:
import core.stdc.stdio;
void main() {
double d = 0;
foreach (i; 0..35)
d = (d+15000)*1.07;
printf("d: $%f\n", d);
}
I would think twice about buying real estate as an investment.
Personally, I own my home because I want to use it as I see fit, but I recognize that as an investment it's a lousy one.
Replies
25 years ago, I sold my previous house. It recently sold for 4x what I sold it for, a 300% ROI. Was selling it a financial mistake?
Consider that I didn't pay property taxes, insurance, maintenance, and squatter eviction costs for the last 25 years.
Consider that the S&P500 went up 561%.
Buying a house is not a good wealth builder strategy.
somehow, I never learned to use a spreadsheet
Can’t argue with the math but one thing about a mortgage is it takes no effort. Just pay the bill and time does the rest. With stock investment there’s an emotional attachment to every major swing, should you buy or should you sell is never far from your thoughts. Using a home as an investment may not make the most return but it’s easy as long as you can pay the bill.