Originally Posted By: kam327
You're forgetting (or omitting) the most important thing. While you're paying for all that other stuff, you're also paying off the principle. Like thousands of dollars a year. If you finance $200k @4% / 30 years, you're paying $950 a month. But after 10 years you've paid $43,000 towards principle. So if you sell in 10 years for what you paid for it now (unlikely it wouldn't have gained value in 10 years), you'll still pocket $43,000. If you had rented the same house those 10 years, you'll pocket nothing.
Our house is roughly that and with taxes is $1198 a month. I could have rented a similar 3 BR apartment in a decent neighborhood for around $1000 a month.
Had I stayed a renter but invested the $20k we put down on our first house, I think I would have made out better in 12 years than the $45k we made when we sold the house.
So yes, I'd have no house but I'd have $$ in the bank for other things. So it's not "wasted money" as I would have the same or more.
You're forgetting (or omitting) the most important thing. While you're paying for all that other stuff, you're also paying off the principle. Like thousands of dollars a year. If you finance $200k @4% / 30 years, you're paying $950 a month. But after 10 years you've paid $43,000 towards principle. So if you sell in 10 years for what you paid for it now (unlikely it wouldn't have gained value in 10 years), you'll still pocket $43,000. If you had rented the same house those 10 years, you'll pocket nothing.
Our house is roughly that and with taxes is $1198 a month. I could have rented a similar 3 BR apartment in a decent neighborhood for around $1000 a month.
Had I stayed a renter but invested the $20k we put down on our first house, I think I would have made out better in 12 years than the $45k we made when we sold the house.
So yes, I'd have no house but I'd have $$ in the bank for other things. So it's not "wasted money" as I would have the same or more.