Quote:
Originally Posted by cured13
Just compare the bills: one year renting 2beds 1 washroom (all in) vs one year of owning that house
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Bought my house for $240k.
Mortgage, utilities, and property taxes all together are below $1100/month. Average rent in the area is $2,000/month.
Current property estimate is $315k based on the previous condition (prior to remodeling). A freshly remodeled property in my area with similar dimensions is $360k.
$240k + $30k (remodel) = $270k. I'll probably sink in another $30k to the house since I'm having my entire backyard redone, garage interior remodel, and new driveway.
After a year, I'm already up $90k. I can't think of another investment turning such a large profit in such a short amount of time. At the market's peak, it was worth $450k. It's obviously equity at this point, but I'd be stupid to sell it.
Definitely going to collect that rent check though once I have kids and need something bigger. After having worked as a personal banker in an upscale/high net worth area and talking to so many retired folks, the majority of them had made their money in real estate. Most still owned the first property they ever purchased. Sure, times were different back then, properties cost far less than what they do today, but interest rates were close to 20%.