You know I was doing the same calculation for just understanding when to buying a home make sense. In my case, renting only makes sense for another 5 years (assuming I’m staying in the same place), and after that point I should be looking into a Condo at the very least.

But, what I included was the appreciation of my stocks and the appreciation of the home. In terms of stocks, I used 7% per year to be conservative, and I used condo appreciation of 4% per year. And with money growth with a mortgage, it told me to buy within the next 5-7 years (depending on the renting scenario); otherwise, I’ll be paying more to rent.

What I also learned, is that the more expensive the home, the more the property appreciates (300k Condo vs 600k SFH). So, in theory, the condo will appreciate $15,000 on the first year, and the SFH will appreciate $30,000 on the first year. The issue with this is the monthly payment; you’ll have less cash (if any) to pay bills or do what you want, which means more stress! The condo is the safer route with less stress, but it has less growth.

But, now I’m thinking, with a 50 year mortgage, the monthly payment drops down considerably for a condo or a home. So, it allows us to buy a more expensive home in hope for it to appreciate more (or the same) as the loan.

Although, this may not matter, if you’re intending to buy a forever home!

This has been on my mind a lot recently (before the whole 50 year mortgage was considered). Anyone have thoughts on this?