You are correct. That’s why the rent is more expensive, if you buy a house and rent it for exactly your mortgage payment you will lose money due to all those things.
If x is mortgage and y is the average cost of all that stuff then x + y = z where z is the break even point. Now most places make a profit which we will call a. Z + A = rent payment. A lot of people compare rent to X and not Z. Now is A excessive sometimes/usually yes… But rent should always be higher than mortgage to take into account Y.
I hate when people say they are ‘losing’ money if the rent doesn’t cover the mortgage / taxes.
No bitch, you’re getting $2k a month outta me thats going into your equity. If you gotta chip in $500 to get my $2k you aren’t losing $500 a month.
Edit: just to clarify, I’m not saying they shouldn’t charge more, but fuck the losing money narrative if rent control or something else changes the situation.
You are correct. That’s why the rent is more expensive, if you buy a house and rent it for exactly your mortgage payment you will lose money due to all those things.
If x is mortgage and y is the average cost of all that stuff then x + y = z where z is the break even point. Now most places make a profit which we will call a. Z + A = rent payment. A lot of people compare rent to X and not Z. Now is A excessive sometimes/usually yes… But rent should always be higher than mortgage to take into account Y.
I hate when people say they are ‘losing’ money if the rent doesn’t cover the mortgage / taxes.
No bitch, you’re getting $2k a month outta me thats going into your equity. If you gotta chip in $500 to get my $2k you aren’t losing $500 a month.
Edit: just to clarify, I’m not saying they shouldn’t charge more, but fuck the losing money narrative if rent control or something else changes the situation.