At what point is it financially advantageous to stop renting and buy a house? I make over $100k a year and have $350k in liquid non-retirement savings (inheritance+savings). We have no debt. My family and I rent a house @ $1000 a month ($500 rent + $500 utilities... super cheap). We know this rent is very low so we have been saving an additional $2k every month to keep our savings fund growing, maxing out our Roth IRAs & putting a lot into savings.
We could easily buy a $500k house and afford it, but I would need to put most of savings into the home to get the mortgage payment down to an affordable $1600 a month plus utilities. But since our rent is so cheap, does it make sense to not buy and keep renting and investing $2K in a low cost ETF?
We live right outside of Austin, not sure if that matters but the market is pretty hot here in central a Texas. I’m worried that if we don’t buy, we will eventually be priced out of the market.
TLDR; if your rent is low enough, is it more financially advantageous to keep renting and save vs buying a house?
Submitted March 10, 2019 at 02:51AM by starfungus https://ift.tt/2UtSMFq
