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0 pointsmensetmanusman1y ago0 comments

Yeah, it would be interesting to have more transparent costs, especially with inflation. New siding every 20 years is $40k, a new roof might be $30k every 25 years, a new driveway, etc.

0 comments

cmrdporcupine1y ago

I just shudder to think about all my trips to Home Depot over the last 20 years of owning a home.

I never did those when I was renting. Yes, I didn't get to renovate or pick my paint colours. And yes my money paid down someone else's mortgage. But I suspect if you add it all up...

chii1y ago

> yes my money paid down someone else's mortgage.

which is a bit of a non-sequitur - who cares what your rent is paying towards? The landlord could be smoking weed with your rent money and you'd not be affected (financially).

nradov1y ago

You should add it all up. Some of the things you purchased at Home Depot can be counted in the cost basis of the home and reduce your capital gains tax if you later sell it.

thyrsus1y ago

For most U.S. taxpayers selling a home, the capital gains exclusion on one's primary residence ($500,000 filing jointly) obviates such bookkeeping.

cmrdporcupine1y ago

No capital gains at all on primary residences here in Canada.

For better or for worse.

1 more reply

darth_avocado1y ago

Biggest of them all: interest. On a $1M mortgage, you’ll almost pay $2M as interest over 30 years even at 7%.

Historically interest was never as low as during the pandemic. And most people bought houses using mortgages. The average “cost” of owning a house is much more than the selling price, even before you account for the upkeep.

bombcar1y ago

The mortgage interest is one of the few costs that people (sometimes) account for. Usually with a hand-waving "my mortgage payment is lower or about the same as my rent payment" - which ignores that a rent payment covers everything whereas the mortgage payment only covers principal, interest (and sometimes insurance and property tax, if escrowed).

jajko1y ago

In many places, this can be substracted from taxes, effectively slashing 35-40% of the cost where I live. So does almost all renovation costs (not upgrades though, just repairs).

Also, where I live 7% wasn't the case in past 20 years, and even now its rather 1.5% + whatever bank puts on.

j / k navigate · click thread line to collapse

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cmrdporcupine1y ago

I just shudder to think about all my trips to Home Depot over the last 20 years of owning a home.

I never did those when I was renting. Yes, I didn't get to renovate or pick my paint colours. And yes my money paid down someone else's mortgage. But I suspect if you add it all up...

chii1y ago

> yes my money paid down someone else's mortgage.

which is a bit of a non-sequitur - who cares what your rent is paying towards? The landlord could be smoking weed with your rent money and you'd not be affected (financially).

nradov1y ago

You should add it all up. Some of the things you purchased at Home Depot can be counted in the cost basis of the home and reduce your capital gains tax if you later sell it.

thyrsus1y ago

For most U.S. taxpayers selling a home, the capital gains exclusion on one's primary residence ($500,000 filing jointly) obviates such bookkeeping.

cmrdporcupine1y ago

No capital gains at all on primary residences here in Canada.

For better or for worse.

1 more reply

darth_avocado1y ago

Biggest of them all: interest. On a $1M mortgage, you’ll almost pay $2M as interest over 30 years even at 7%.

bombcar1y ago

jajko1y ago

In many places, this can be substracted from taxes, effectively slashing 35-40% of the cost where I live. So does almost all renovation costs (not upgrades though, just repairs).

Also, where I live 7% wasn't the case in past 20 years, and even now its rather 1.5% + whatever bank puts on.

j / k navigate · click thread line to collapse