Can you show how my math is flawed with actual numbers?
Show me how putting 100k in bitcoin and renting an apartment will make me less wealthy than putting 100k down on a house and paying a mortgage over a 30 year time period.
Discussion
Thatâs a false comparison, because as your own numbers said, you only need to put 17,500 down to mortgage the house. So if you have 100k to spend, you can actually buy the house AND bitcoin, itâs not either/or you can buy 82,500$ worth of bitcoin, and pay the mortgage.
Thatâs fine you can use $17,500 instead. Assume thatâs all the money I have. How will my net worth make me better off buying instead of renting 30 years from now? Show me the numbers
In my initial post, the down payment was $37k and the difference wasnât even close.
If thatâs all the money you have you donât qualify for the house in the first place.
Yes I do with FHA on a $500k home
If you qualify for FHA with a 3.5% deposit on a 500k loan at 2.5% interest, there are a lot of assumptions to to make about HOA fees, property taxes, PMI, existing debt levels. I made assumptions of 2700/y in property taxâs and 2400/y insurance and mortgage insurance of .8% and no existing debt, suggesting you make ~90k/year and will be paying just about 28k/year on the mortgage.
After taxes, and mortgage you should have somewhere around 2500/month left over. Buy your food, and other stuff like phone or utilities and you probably have about 1000-1500$ left over each month.
Save in bitcoin.
I think this scenario is totally unrealistic. If youâre making 90k per year as a single male, have only saved 17,500 dollars, and are deciding between buying a house or buying bitcoin with your ENTIRE savings, you possibly could have recently acquired a very secure position and are looking to leverage that job security ASAP but most likely have been spending too much. If itâs the former, you could decide to buy the bitcoin now and then proceed to buy the house in one year, or vice versa. If itâs the latter, you most likely canât budget properly to afford the house or the bitcoin anyways.