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If I was renting a comparable unit I would be paying about $1200 a month. Since I have purchased it, my costs drop to about $300 for homeowners fees and $150 property taxes or $450 a month- a savings of $750 every month or $9000 a year. I am sure lots of people would not mind having an extra $9000 a year. That is a huge increase in my after-tax income.
So basically invested in an asset for $110,000 plus interest over 13 years, am now getting $9000 a year in return on it every year into the future (money which would be paid in rent instead) and still own the asset which is still valued at over $150,000 or about 50% higher than what I bought it at (the current selling price of comparable units). I think I did pretty well and don't think there are many other investment opportunities which can offer this.
Compare those to what I would have gotten for renting instead of buying. $1200 a month is $14,400 a year. Over the time I spent paying off the loan (13 and a half years) , I would have paid out $194,400 anyways and had nothing left.
Last edited by Zippyjuan; 11-20-2012 at 12:40 PM.
Cheer up! Things could be worse!
So I cheered up- and sure enough, things got worse!
I am Zippy and I approve of this post. But you don't have to.