> Interest is 100% loss also, so what's your point? The cost of both are already factored into the calculations.
Everybody knows that. That's why you can take positive action to minimize interest outlay over the lifetime of the loan and reduce that loss. From refinancing, to shorter loan terms, to early principal pay down. You can't do anything analogous as a renter. Interest is only a small part of the total mortgage payments, while rent is a 100% loss always.
> $400/yr insurance is not going to cover anywhere near the full cost of maintenance and upkeep.
Maintenance and upkeep on my house costs way under $400/year.
What are you actually including in that $400/year though? Are you taking full maintenance and upkeep costs into account?
A new roof and new coat of paint will already blow your budget. Your pipes will also need replacing after 30 years, as would your hot water heater, among a plethora of other expenses that come up.
So yeah, if I had to replace all of my appliances, get a new roof, repaint all of the interior and include having bi-weekly yard maintenance for 6 months a year then over 30 years I'm probably looking at over $400. But nobody does that unless you've bought a lemon.
Roofs last about 25 years except in very unusual circumstances that insurance covers, our appliances are 10 years old but work fine. I could probably do with a new washing machine, but it's okay. I won't pay more than $500 for one anyway. I'll cross fingers and hope that my hot water heater and heating a/c make it 20 more years. If not, it's not like the cost to fix comes anywhere near the 100% a month in rent I'd be throwing away so my landlord could replace everything with refurbished second rate equipment.
Nobody replaces pipes after 30 years except for leaks or lead.
But let's differentiate normal maintenance from repairs (just like with cars, oil changes from engine replacements). If I had to guess, I'd say my monthly maintenance on my house was under $50/mo? Amortize the repairs I've put in over the last 10 years? I've probably put in $1000 in work or less than $3/mo over 30 years. So I have a lot of room.
The smartest thing to do is buy a home under the condition that the previous owners do all that work right before you move in and absorb it out of their equity.
Look at it another way. You're already paying for this stuff built into your rent. If luck happens and nothing breaks, that's money the landlord pockets and you don't have anymore. If you own it, it's just extra money you can use to pay down your principle, reduce your interest losses and pay off your mortgage faster.
Everybody knows that. That's why you can take positive action to minimize interest outlay over the lifetime of the loan and reduce that loss. From refinancing, to shorter loan terms, to early principal pay down. You can't do anything analogous as a renter. Interest is only a small part of the total mortgage payments, while rent is a 100% loss always.
> $400/yr insurance is not going to cover anywhere near the full cost of maintenance and upkeep.
Maintenance and upkeep on my house costs way under $400/year.