> Doing the real math is the trick of the trade. The math for owning has been made so that it looks like a good deal while in reality it is not at all. Most people will literally compare mortgage to their rent, or "I sold my house I bought for 500k for 1M$, therefore I made 500k$".
Can you try to offer some explanation for your reasoning?
I mean, for blue collar or even white collar workers, lower monthly payments for a mortgage does increase disposable income. When you eventually pay off your mortgage your expenses drop to zero.
> This calculator get most things right.
I think you need to educate yourself. There are rent vs buy calculators that allow you to do parametric tests and eventually arrive at the rather obvious conclusion that renting is marginally advantageous only in short time windows (up to around <5years) whereas buying is advantageous beyond that point.
I spend more time than 99.999% of people on this subject and I'm quite educated in economics.
I'm not arguing that buying a house is never right. I'm arguing that on average, especially in today's environment it is extremely difficult to make the number work in favor of owning as an investment. As a lifestyle luxury for the intangibles? Sure. But as an investment, this doesn't really make sense anymore.
>> Can you try to offer some explanation for your reasoning?
Those two numbers simply do not represent the same thing. A mortgage is an absolute minimum that dismisses the opportunity cost on the downpayment, doesn't include all the fees and definitely doesn't account for the increase in taxes, HOA and insurances.
>> When you eventually pay off your mortgage your expenses drop to zero.
Who pays for Taxes, Insurance, HOA, Repairs? Who pays the 6% realtor fees the day you sell?
Based on those questions, I would invite you to similarly get educated.
Can you try to offer some explanation for your reasoning?
I mean, for blue collar or even white collar workers, lower monthly payments for a mortgage does increase disposable income. When you eventually pay off your mortgage your expenses drop to zero.
> This calculator get most things right.
I think you need to educate yourself. There are rent vs buy calculators that allow you to do parametric tests and eventually arrive at the rather obvious conclusion that renting is marginally advantageous only in short time windows (up to around <5years) whereas buying is advantageous beyond that point.