How much you actually spend on house - my calculation

[Thokkalee]

Your numbers are skewed because you are paying only 10% as down payment... that will increase your monthly payment as well as PMI... as a thumb rule, don’t buy a house if you cannot afford to make 20% down.. then the numbers will make more sense.. 

also, if you are paying 2000 as rent, make sure that you don’t go over 3000 as monthly installment including everything.. then work backwards based on your affordability..

we all don’t need big 4000sft houses... no one stays with us here in US... friends and parents can adjust anywhere.. they don’t need separate rooms.. 

[fasak_vachadu]

Kabhi apna apna Hota hai 

parya parya hota hai 

 

mana Anne feeling vare abba

[k2s]

4 hours ago, Telugodura456 said:

Data assumptions :

30 year loan at 2.6%, 15 year loan at 1.8%

House price 780k

Down payment 78k

Closing costs 30K

Taxes : 11k

HOA + insurance: 450 pm

Results:

Monthly Payment : 4600 (including PMI)

Scenario 5 year ownership (assuming house price does not decrease):

Total spent (assuming no repair costs) : 4600*60 = 276,000

Equity part = 80,000

Actual expense = 196,000

Opportunity cost of 110k (78k down plus 30k closing costs) total down (assuming 8 percent return in stock market) = 80k

So total expense = 196,000 + 80,000 = 276,000

Total expense  per month= 276,000 /60 = 4600

So cost of enjoyment of house = 4600.

Conclusion

So if you can rent a house for less than $4600 then you are better off than buying a house

very good man.. in calculating... when you are buying house ? or already boughten a ?

[k2s]

3 hours ago, Shameless said:

I can personally feel that the kids do have a special connection with their own house...I bought my house 2.5 years ago and before that we rented 2 floor of a house and I do know that restrictions and rules in the rented space and now I can proudly say that my wife, I, and my kids have enough freedom to enjoy every inch of our entire house...

the only difference renting a house and own house financially is $200...

$200 I am paying extra doesn't even come close the happiness we have in our own house...

By the way, I still have opportunity to rent some of the space I have and that can at least cover half of my mortgage... 

a pani cheyi.. unna santhosham kuda M-kudisipothadi.. 

[quickgun_murugun]

4 hours ago, Spartan said:

u cannot put price tag for Children's experience growing up in own house 

Ofcourse but antha attachment avsaram ledu… if we are comfortable that place is a home … overall economical and affordable living matters ! 

[Shameless]

6 minutes ago, k2s said:

a pani cheyi.. unna santhosham kuda M-kudisipothadi.. 

I mean I can rent my basement bro...the basement has its own entrance and it won't have anything to do with us....

[quickgun_murugun]

4 hours ago, Telugodura456 said:

ypu have made a total down payment of 110k for the house. If you rent you can keep the down payment and invest in to stocks. At 8% growth you can make 70k extra in 5 years. Also lets say you can rent a same house (usually rents cheaper) at 3,600 then there is another 1000 savings which is another 60k extra in 5 years.

So total wealth is in 5 years in renting is 130k. In house is only 80k(the equity part of the monthly payment).

Austin lo maa cousin family bought house for 450k in September 2017 now it’s valued close to 950k-1Mil 

enla pedithey osthay anni paisal ? 
they paid 100k down payment and about 12k closing costs.. ippAtidaka house ki about 25k paid… 

ammithey easy ga 450k osthay 

[no01]

how many ppl really invest money in stocks/bonds etc instead of buying house?...im sure many ppl just sit with cash in their bank which does not give any returns and at the same time they dont buy house either. Appu untene manaku savings ante ento, ela sampadinchali ante thoughts vasthai....ledante money oorike waste chestham.

so for these type of ppl (who are in good numbers), buying house is better...atleast equity build avthundi and in-future they will have some asset.