Sort of. Rent actually should some times be more than mortgages, but only for comparable property types. I agree that renting a 1BR apartment should not be more than renting a 3 BR house. But, renting a 3BR house should be more than having a mortgage on a 3BR house.
givesomefucks@lemmy.world 5 weeks ago
Their mortgage is $1,400 a month, and they rent out the home for $2,300. Their apartment costs $1,600,
They just kind of glazed by the root of the issue…
Rent shouldn’t be more than mortgages.
They can do this shell game, because they’re still making $700/month and building equity. Someone without a house to rent is absolutely fucked.
MolecularCactus1324@lemmy.world 5 weeks ago
rc__buggy@sh.itjust.works 5 weeks ago
And it’s because of that old axiom, “Rent is the most you’ll spend on housing, a mortgage is the least you’ll spend on housing.”
MolecularCactus1324@lemmy.world 5 weeks ago
Yeah, mortgage involves risks that renting does not. Rent includes compensation for the risk spread out over time.
rc__buggy@sh.itjust.works 5 weeks ago
Not just risk but amortized maintenance. Water heater only lasts 12 years, furnace 18. Roof is about 20, siding 15-50 depending.
ThePantser@sh.itjust.works 5 weeks ago
Where did you get the extra $200?
Also it will be definitely less than $700 unless they have a rental agreement that the renter does all repairs and improvements. What happens if the roof starts leaking? Whose footing the bill on that one? What about insurance? Landlord insurance isn’t cheap.
They seem to be really living on thin margins and probably building a ton of credit card debt.
givesomefucks@lemmy.world 5 weeks ago
They get 2,300 and spend 1600 by living in the apartment and renting.
$700/month and equity.
But obviously it’s more of an issue when it scales up
Breezy@lemmy.world 5 weeks ago
They still pay the mortgage of 1400 a month as well.
CarrierLost@infosec.pub 5 weeks ago
Yeah they’re still technically $700/mo in the negative.
$1400 mortgage + $1600 apartment is $3000 in expenses. $2300 income from the rent gives them an outlay of $700 they still have to come up with for the apartment.
So for strictly housing costs, they pay $700/mo. That likely doesn’t include all of the other things they need: food, transportation, medical, utilities, etc.