You are correct. We went from a 5br, 3ba, to a 3br, 2ba. The savings in housing costs allowed us to completely max out our 401(k)'sIt seems obvious that when comparing an asset that might grow a few percent per year (a home) to one that triples (the stock market) the asset with higher growth will result in more money. Presumably you had to pay rent instead of a mortgage. The issue is were you paying that much less for an equivalent living arrangement?
Well, it's the truth, what can I tell ya. Our last house, we paid 315k. Sold it 16 years later for 445k. That did not include the over 300k in repairs, maintenance, interest, taxes, upgrades, etc. Enormous loss right there. In the last ten years, renting has allowed us to save 300k, plus market growth that has propelled out net worth into the stratosphere. We would not have been able to save and invest that much money while we owned.
It makes perfect sense.
Maybe you were. But that’s not the case for most people.
Statistics: Posted by meowcat — Fri Dec 06, 2024 7:14 am — Replies 452 — Views 35802