@TheSamParr makes the case for why buying a house is a bad ideahttps://bit.ly/2PKRxRy
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If you’re paying your landlord your cash, how are you also using it elsewhere?
This is basic math. You have $200k in cash. You can use that for a 20% downpayment for a house or invest it elsewhere. According to 100 years of data, investing it elsewhere while paying rent will likely make you more $$$ in most home buying situations.
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You do NOT need to do 20% down. 3% is fine. That is a HUGE difference.
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Right - then you're monthly payment is just bigger.
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Yes very basic math— if you pay the US average of $15k downpayment, then $1500/month in mortgage payments, at end of the year you will have ~$33,500 in home equity. (Let’s call the interest rate to appreciation a wash).
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Whereas if you invest $15k into the market at 8%, you will earn $1200, but will have paid out around $14850 in rent on an average two-bedroom.
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