I'm still convinced these people are crazy.
Years ago, pre-2008 in fact, I posted something that lighted a firestorm of indignation - I questioned the sanity of people who buy new RVs and amortize the purchase over 20-25 years. I had been to an...
Forum Discussion
qtla9111 wrote:You paid $287.78 per month to live in a house that after 30 years you would own free and clear. Now go back and calculate how much it would cost you to rent an apartment for those same 30 years and what you would own when those 30 years are up. And you seem to want to allude that buying a home is a bad investment? Compared to what? Living in your parents basement.
First house I bought I paid 48k in 1984. Here is what it would have cost me and what it is worth today.
Principal borrowed: $48,000.00
Regular Payment amount: $287.78
Final Balloon Payment: $0.00
Interest-only payment: $240.00
*Total Repaid: $103,600.80
*Total Interest Paid: $55,600.80
The payment doesn't include property tax or insurance or the maintenance such a new roof every 10 to 14 years, plumbing, new central a/c, updates, etc.
The home today (no longer mine and originally had an interest rate of 14% which changes the above picture) is supposedly worth 93K, and will probably sell for 85K.
Some real estate may be an investment, but unlike or in this similar to real estate, buying on credit is not always and almost not always the best investment.
We live in a society of instant gratification. Sure, life is short.
What it really cost you was about $20,000 for 30 years rent. That's about $50 bucks a month. And after the 30 years you get to live rent free.
