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Cake day: July 3rd, 2024

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  • …ish. My wife and I just did this calculation and (at least in America) property taxes throw a wrench into it.

    A decent rental home in Texas costs about $2650 per month. A similar house costs about $460k to buy, and run about $1000/mo in taxes. So you’ll only save about $1650 per month.

    Even putting that 460k into a bank account at 4.5% interest will give you $1725/mo, let alone stocks, index funds, and all the other investments you could be doing that will out-perform real estate.

    Of course, that doesn’t disprove your point about poverty since you need to have the money to buy/invest. But it’s just a reminder that houses are not the wealth builder that a lot of people imagine them to be.

    Always research and determine the best option for your financial situation. Gate-keeping financial literacy is another tool the wealthy use to keep people in poverty.