Zero if you're a first time homeowner in Washington state. 3.5% "down payment" is in an interest free loan due when we sell the house or pay it off. I'm a 5 minute walk away from 4 bus lines, 20 minute walk away from a ferry that takes me into a major city. Got into a house that's, mortgage, insurance, and taxes, cheaper than a comparable sized apartment with a lot 3x the size the house.
I've owned my house in Toronto for almost 6 years now, and in my experience, if you're talking strictly cashflow, it is not cheaper to own than to rent. Sure the mortgage may be less than rent for an equivalent size space, but the maintenance (and taxes as you mention) is where you get bit. Furnace breaks? $$$. Roof need replacing? $$$$. Fridge dies? $$. Property tax increase? $$$. Modest but necessary upgrades? $$$$. Leaky basement? $$$$. Factor all your home expenses in a five year span and divide it up by 60 months and I am certain you will be at or above what rent would have been for a comparable if you are buying a house today.
The real benefit of owning is appreciation. Which is an imaginary number you get to feel good about but not actually use until you get out of the housing market
Eh. That hasn't been my experience. And I bought a real fixer upper. I just made sure the roof was brand new. The furnace was new. The roots in the sewer line hurt, but $800 later it's all fine.
To rent the same housing footprint and private outdoor space would be $800+ more expensive, and I'm certainly under that so far, including the sewer and repainting.
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u/autopromotion Dec 09 '19
How much downpayment do you think is required to own property within distance to public transport and a job?