Quote:
Originally Posted by Isaac Zachary
What about if there's an oportunity to buy a house like this?
It's deed restricted and the family can't make more than $56,000 year, which we qualify for. But I calculate the mortgage payments to be about $2,000 a month! That's half or our or anyone's income that makes that much! I wonder what kind of taxes and other fees I would also have to pay. Seeing how I'd be nearly 80 years old by the time I pay it off I don't think it's worth it.
https://www.homes.com/property/100-o...tn40rjx8qs3td/ |
You don't have to pay it off to come out ahead. Paying rent has no equity. You're supplying the equity for someone else.
$2k/mo will be beans in 10 years as inflation erodes the value of money.
My mortgage from 13 years ago on a 4-bed 2.5 bath 2600 sq/ft house is like $1,200/mo with taxes and insurance as escrow. The rental value is $2,600, or double my cost. I paid $217k, and it's valued at $517k. I've got like $400k in equity from the house in only 13 years, and the mortgage has entirely been paid by renters throughout this time.
If you can afford to buy AND a lender is willing to fund your purchase, it's almost always the best long term plan.
I take out the largest mortgage lenders are willing to give me because they actually are quite conservative these days when it comes to their threshold for debt to income. If they are willing to lend the money, I'll easily be able to pay because I'll always make any adjustments needed. Even if I lose a job, I'd just rent out a couple rooms and the mortgage would be paid.