Six Reasons you Shouldn’t Feel Bad About Renting Instead of Owning

The narrative that you won’t see

First

Second

Source: FRED homeowner equity tracker.

Third

Amortization loan schedule for $690,000 home with $50,000 downpayment at 4% interest.

Wrong.

Fourth

Equation to model cost of homeownership (monthly).

Fifth

“If I had a way to buy a couple hundred thousand single family homes and have a way of managing them, I would load up on them. I would take mortgages at very low rates… It is a very attractive asset class… If I was an investor who was a handy type, which I am not, I would buy a couple of them at distressed prices and find renters and again take a 30-year mortgage, it is a leveraged way to own a cheap asset. I think that is probably as attractive as an investment you can make.”

Sixth

Amortization loan schedule on $600,000 home. $20,000 down, 4% interest for 30 years.

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Anthony Andranik Moumjian

Written by

UC Berkeley, mathematics. Los Angeles. Long-time runner. Top writer on Quora, 100M+ total content views. New to Medium. Inquiries: Moumj@berkeley.edu

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +786K followers.

Anthony Andranik Moumjian

Written by

UC Berkeley, mathematics. Los Angeles. Long-time runner. Top writer on Quora, 100M+ total content views. New to Medium. Inquiries: Moumj@berkeley.edu

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +786K followers.

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