Diana (dihong) wrote,

Home is where the hole in my wallet is...

So, true to form, I channeled my anxiety into an Excel file and created a cost-benefit analysis to buying versus renting.

Basically, I took my mortgage amortization schedule (non-highlighted columns) and added assumptions about my current rent vs:

* Additional expenses from home-owning (property tax, maintenance)
* Interest expense
* Less tax savings (from claiming mortgage payments on my return, plus the $8k first-time home buyers' incentive)
* And the opportunity cost of investing the down payment and purportedly getting a 6% return over the next 30 years.

I break even more or less over 30 years on expenses, so it's all about the capital gain at this point.

I didn't index anything to inflation, though. Once I add that in, it's a very sad commentary on home-buying. Or perhaps inflation is just sad in general!

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