> But I wouldn't expect the mathematical logic to convince anyone. This
> is, after all, a semi-religious debate.
I agree with that statement, but think you are incorrect about who is being religious.
My mom runs a small mortgage shop here in Lancaster PA, US. Most of the mortgages she sells to people are 4-5 person families who earn $65K-85K a year. Houses in the 125K - 250K range. A LOT of first-time home buyers.
Step 1 of getting the mortgage involves reviewing their current rent and reviewing their budget and factoring in the additional home ownership costs. She recommends people live with this new budget (put the diff in savings) for 2-3 months to feel what it is like. If they are comfortable, she pre-qualifies them for a loan in a certain tax area so they know EXACTLY what their payment will be.
These are of course old fashioned 30 year 5-10% down loans.
I don't see why it is so hard to understand why people decide to make this change.
OK, yeah, a rent controlled NYC or SFO apartment is a better deal. Cool, who has one available?
Or buying into a co-op a bunch of other people created is a better deal. Cool, how about one of those?
My mortgage is $1000/mo and I have about 1000 sq ft. The 600 sq ft apartment I left was about to go to $815/month and that was 5 years ago (it is literally down the street). I spend an extra $100/month on utilities and maybe $100/mo on maintenance.
I just checked an add in the paper and renting a house comparable to mine (not really, it is 50 years older and in disrepair) is $1800/month. That does NOT include *ANY* utilities.
Matt
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