[quote=evolusd]Are you taking into account your down payment when you compare piti to rent? For me, this is a huge factor that people don’t consider – the lost investment potential of their down payment. I have a hard time putting a large chunk of my eggs (20% down) in this one residential property investment.[/quote]
No I did not. But at the same time, I’m counting P as well. If you want a true apple to apple comparison to mortgage vs rent, it should be ITI (of 100% financing) + maintenance (true maintenance and not upgrades since your landlord will only fix it just enough to get it working and not upgrade things for you) – tax deduction vs rent. Since those $ are 100% throw away or cost of living (depending on how you look at it). P and down payment can be recovered if you sell for the price you paid for or if you plan to stay there and pay off the mortgage. If you plan to stay there till you die, and you want to be more accurate, you should also count in years you hope to be alive w/out a mortgage. You should also account for typical rise in rent. There are many more variables, but PITI vs rent is a quick and dirty calculation.
