Mortgage or Rent?
Most likely every young person or couple is having such dilemma. What to decide for?
If I didn’t know yet where to stay for ever, rent would be a clear choice.
Once I knew that Paris/Detroit/Prague would be the right place to live, it is time to think.
In short: Once I know where to stay long-term: MORTGAGE
Let’s say I pay rent 2 000 Eur a month. Whole this amount is going to some else’s pocket.
If I go for mortgage and the monthly payment would be the same 2 000 Eur, part of it goes to bank as interest and the remaining part goes to my mortgage debt.
I am throwing away just the interest cost.
In thirty years (30 x 12 months means 360 months) I would pay 360 x 2 000 Eur which is enormous 720 000 Eur. In case of mortgage I would have in the end a place to live while in case of rent, I would need to pay on to have a roof above my head.
Of course everything is described easy, I will get to details in some other article.
Let the paying begin!
PS If you are interested where I invest, try my overview HERE.