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The way I remember it we were paying less than £1000/mo for rent but would have paid over £1500/mo for a mortgage.

Depends on how long you are planning to live there. You accumulate more equity in the latter part of the amortisation schedule with a fixed-payment mortgage.

If you're only planning on living there for a year or two and take out a 20 year mortgage, you're kidding yourself if you think you're "saving up" equity. If you plan to live there for ten years, now that's a different story.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jun 1st, 2011 at 07:15:28 AM EST
[ Parent ]
That quoted bit should've been:

Of course, when you're paying rent all the rent minus owner's expenses goes to the owner, whereas when you're paying a mortgage the mortgage minus interest stays with you, so it might still make sense to buy at £1500/mo over renting at £1000/mo.

Needs moar caffeine.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jun 1st, 2011 at 07:16:24 AM EST
[ Parent ]

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