When does it really pay off to invest in a house.

[jimikim]

Paying rent is not really wasting your money. Think of paying rent as living at a place on an interest only loan, hence you never pay into the equity. Also you are taking away the risk that the value of your home may drop because in fact you don't own it. Also rent is cheaper and doesn't require a down payment.

 

[FrustratedUser]

Originally posted by: Skoorb

Originally posted by: FrustratedUser

Originally posted by: Skoorb
Sounds to me like you should hold tight :0 but stop putting that money into savings. Invest 😀

I will further down the road. I just like to have a nice buffer in liquid funds (not alcohol 😀) and then put some away in a fund or something.

It's a good idea. Just don't sit there with like $50k in a savings account like some people do 🙂 People talk about needing 6 months worth of cash, but that's kind of silly. How often does a person need that? Plus, if you run into hardship you can lop your spending off at the knees. 6 months worth of cash sitting in an account is a good bit of interest, and in terms of emergency money credit cards are fine for that.

I like to have ~20k in savings just because it's nice.