Does owning a home still make sense in 2021 or should we rent?

We can’t make it a month without someone asking, does it still make sense to buy a home in 2021 or should we continue to rent? What if we gave you the real numbers to see if it actually makes sense to rent or buy? Do you know how long you can hold a home for before you ACTUALLY make money? The numbers may shock you. All the specific details are in the video below but the high level is below.

So let’s take a look at the real numbers

Can you buy and hold a home for 2 years and make money?

Just because the market is skyrocketing doesn’t mean you can make money. In the video above, we go through this live for the first time with you. Steve did not know the outcome before this video.

The app we used for the video: Property Evaluator (non affiliate link)

Here are the assumptions we used:

$400,000 Mortgage // 20% down // 3.15% interest rate // 30 Year mortgage

Here are the expenses we factored in

Here is the monthly mortgage payment

Here are the assumptions for the growth of the equity and market

If I hold this property for 10 years, I lost money. This factors in all of the costs associated with the mortgage. The payments, the taxes, the maintenance, the interest, the downpayment, everything. Once I pay all of that, factor in closing costs, equity gained and buy-down… We end up losing money.

The math is not that simple though.

At what point do we make money?

According to simple math, around year 12 we are actually profitable money in vs money out.
You might be asking yourself, wait a moment, I get a check at closing…. I made money right? A good portion of what you paid in plus the equity you earned is returned back to you. We call this a forced savings account.

So here is the big question… Should you buy a home or rent?

We believe you should still buy a home. Even if you rented for 12 years, that would have been over $300,000 you would have given to a landlord with nothing in return.

Here is a download of the actual PDF report generated in the video above.

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