this post was submitted on 03 Oct 2023
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[โ€“] mke_geek@lemm.ee 1 points 1 year ago (1 children)

If you live in a place for 2 years and have to spend $18,000 on a mortgage and $20,000 on repairs, that's definitely more expensive than just paying $24,000 in rent. Not everyone has $20,000 just laying around to fix stuff. They'd rather spend $20,000 over 2 years going on vacation, eating out, or having fun.

since owner wants to make money

You mean, earning money from their job (managing the property). It's not free money, it's their income. Just like other people get a paycheck from a regular job, landlords are just self employed. Running your own business might mean not taking a lot of pay (or no pay) some years.

[โ€“] neshura@bookwormstory.social 2 points 1 year ago (1 children)

So the 18k for the mortgage just disappear when someone else owns the place? Do you even listen? Unless you're renting from a corporation (in which case the rent is not going to be cheaper anyway, they'll just make more profit) the landlord is paying that same mortgage (maybe only 17k since they have a longer history with the bank). You're not getting out of this cheaper. Any cost you might have with a house the landlord has as well, at best they get a better credit from the bank but overall the difference is so miniscule it doesn't balance out the cut they add for themselves onto the rent.

Regarding your second paragraph see my list of reasons why you might legitimately rent. If the saved time is worth it for you then that is absolutely valid but don't delude yourself into thinking it's cheaper.

[โ€“] mke_geek@lemm.ee -1 points 1 year ago (1 children)

So the 18k for the mortgage just disappear when someone else owns the place?

If it's at the beginning of the mortgage, most of that is interest because interest is front loaded.

[โ€“] neshura@bookwormstory.social 1 points 1 year ago (1 children)
[โ€“] mke_geek@lemm.ee 0 points 1 year ago (1 children)

At the beginning of a mortgage you're really not gaining much equity if that's that your prior comment was about.

[โ€“] neshura@bookwormstory.social 2 points 1 year ago (1 children)

The point is that it doesn't matter if the landlord pays the mortgage or you pay it it is still there. And if the landlord pays it you can be damn certain it's gonna end up in your rent calculation.

[โ€“] mke_geek@lemm.ee 1 points 1 year ago

And if the landlord pays it you can be damn certain it's gonna end up in your rent calculation.

Well obviously, they aren't going to work for free.