In this episode, I'm breaking down all of our family's numbers for our old mortgage, our current rental, and our future custom home. Plus I'll explain how math backs me up on the argument that renting isn't always "throwing money away".

Join me for this much-debated conversation.

IN THIS EPISODE, SAMI SHARES ABOUT:

• All of the real numbers for…

  • Old mortgage payment⁠

  • Current rental⁠

  • Land

  • Future custom home

NUMBERS BREAKDOWN

BUILDING OUR CUSTOM HOUSE

• Land $120k +  House $280K -$12k (10% of land) = Loan for $388k with 4.5%

• 4.5% 30 YEARS = $1,965

• PAYMENT / PRINCIPAL / INTEREST $708,113.17 / $388,000.00 / $320,113.17

• $1,965/month payment (30 years) $100/month insurance $3,000/year property taxes =$27,780/year

• 30 YEARS: $388k PRINCIPAL + $320k INTEREST + $36k INSURANCE + $90k TAXES = $834K (not including repairs + maintenance)

RENTING OUR CURRENT HOUSE

• $600/month rent $175/month storage $20/month insurance =$9,540/year

• 30 YEARS: $286k

CUSTOM HOME VS. RENTAL

• $18,240 MORE /year towards housing OR $1,520/month

• “Wasting” $446k BUYING vs. “wasting” $286k RENTING

• $160k over 30 years

• Taking the extra $1,520/ month and investing it…

  • Invested in Savings Account 1% x 30 years = $637,379.21 OR

  • Invested in 401k or IRA 8% x 30 years = $2,140,996.89

RESOURCES MENTIONED:

• [YouTube Playlist] Building Our Dream House 

• [Mentioned IG Post] @buildingbread

• Investment Calculator

• Mortgage Calculator

• —> Sami’s YouTube Channel