If Steve loses his job or otherwise sees his income decrease, he can downsize to a more affordable place. If he has an emergency or wants to open his own business, Steve will have a much easier time turning his investment into cash than Harry will. I think this calculator mostly ignores the value of liquidity, mobility, and diversification.Ĭompare Stock Market Steve to Harry Homeowner: But the calculators are still useful for people who want to see how much extra they're paying/saving for their preference. Owning a house is a time sink and they're a hassle to get rid of, so it's not for everyone. They also want to be able to easily move to a new place without having to deal with listing and selling a house and buying a new one. These are people who would probably rather rent than buy, even if renting is more expensive, simply because they value their free time and don't want to spend it doing house shit. If something is broken they'd rather just call the landlord and be done with it. They like renting because they don't want to deal with upkeep. They just aren't really options for me.īut on the other hand, many people don't want to be saddled with a mortgage.

Basically, renting doesn't fit in with my lifestyle. I would be willing to pay much more to own even if it was significantly cheaper to rent. I like owning property and hate having a landlord. I would personally never rent unless I absolutely had to. Would need to peek inside this thing to see how they calculate tax savings re std deductions, if at allįor a lot of people, the financial aspect isn't the only decision. High price homes in high tax states might be off due to “salt” limits Edit 4 and for homes under 300k give or take, or married couples with large std deduction, likely best to set marginal rate low due to higher std deductions now so unlikely to have- or less - benefit of interest and taxes. This calculator nails it all.fees on purchase and sale, expected years of stay/ownership, your tax bracket, opportunity cost (editable % return loss) on down payment and on recurring costs, adjustable inflation factor on home values, expenses, and rental costs, and more.ĮDIT it's also in the tools wiki of this Sub.ĮDIT2 paywall but a few free articles allowed monthly.ĮDIT 3 yes might be slightly outdated due to changes in deductibility of state and local taxes and new standard deductions, but likely still close or perfect for most situations. (They perhaps mention two or three factors.) buy discussions on here and elsewhere, people have such strongly held convictions, often based on an incomplete analysis. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.

Nytimes real estate rentals