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Landlord told me renting was throwing money away, but his math on a $310k house didn't add up
Was chatting with my landlord in Denver last week and he said I was wasting $1,850 a month on rent when I could be building equity. So I ran the numbers on a $310k starter home nearby and between property tax, insurance, and the 7% rate, I'd be paying about $2,600 a month before any repairs. For folks who've bought in the last year or two, how did you decide the jump from rent to a mortgage was actually worth it?
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park.aaron2d ago
That "$2,600 a month before any repairs" line is the part most people skip over. What nobody talks about is that rent is the ceiling on what you pay, but a mortgage is the floor. Like, your landlord can't hit you with a $9k roof in year two, but a bank sure can through your escrow account when your property tax gets reassessed. In Denver especially, that county reassessment can jump your payment a few hundred bucks overnight and you just have to eat it. So the real math isn't rent vs mortgage, it's stable payment vs a number that only goes up.
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