He's including stand alone homes in his estimate of square footage. Sure, if you count that 5bd\3ba\3gar mcmansion that rents for $2850\mo then the numbers he's using work out. Maybe in his market?
We own rentals and your a little confused. When using a property as an income source, it becomes a business. Mortgage interest, taxes, insurance and maintenance now become deductable. The rule of 10% now applies. It's states rent must be greater or equal to 10% more than the Principal dollars minus costs of interest, taxes, insurance and maintenance. The goal is to pay the mortgage but incur a net zero or loss on your taxes.
The article I referenced was an average from the 50 largest cities in the US.
It was a USA Today article, one of a dozen available to read.
No, he’s comparing apples to apples. USA Today is not. If you buy a median house let’s say 200k for giggles. Your mortgage may be 1200. If you want to turn around and rent it out it’s going to be 1500. Slightly more than what u paid. Because you have to cover expenses, other wise there would be no rentals. It probably goes by bedroom size?
Well cities you are renting one room apartments. Sure, one room apartments will be cheaper then buying a house. But who wants to live that way. Buying is always better in the long term.
No, the goal is to make money. And you don’t make money when you are incurring a net zero or loss on your taxes.
No, im sorry. I thought I was replying to one of the other guys comments. Scratch that last response I made to you.
Yeah, all leftist, globalist disinformation that only leads the reader to their end goal for the nation. Sorry, I don’t put much stock in the msm.
No, the goal is to pay down an appreciating asset without paying taxes while that happens. There a reason the wealthy pay far less tax than the middle class. They utilize the equity from their assets which are taxed at a much lower level than income.
Maybe if you’re talking about billionaires and their assets. The little Joe Schmo who buying a house and renting it is trying to make money. The little bit he pays in income tax is going to be far less then he makes on the property.even millionaires wouldn’t see a benefit from not making money to avoid paying income tax.
He jumps into every conversation about finances and almost all of his advice is terrible.
Ok, Given these figures you’re down to roughly $400 month. Look, this really isn’t up for debate. People have studied this who are very smart. Long term, buying is better than renting financially, and for your emotional well being as well.
Zillow says it can be cheaper, but for the most part home ownership is the way to go.
Yearly maintenance is approximately 3% of the property value. 200k nets 6k or 500 per month of additional cost. Now we're at $900 per month and 850K of compound interest savings over a 30 year mortgage.
