10/11/2021
Albeit rudimentary, with just some basic back of the envelope calculations, it becomes pretty obvious how financially dumb renting long term can be!
The first picture assumes a $2,500/month rent over 5 years compared to the value of a $350,000 conventional mortgage with a 30 year term, 5 years into the mortgage.
The second picture assumes the same terms, rates, costs etc. as the comparison above and despite everything else being equal, you can see that this model predicts the same if not a LESS EXPENSIVE monthly payment vs. renting... AND you actually own the house at the end!
I thought that this could be helpful to the people in my generation who think that owning a house is too expensive or too hard...
