Am I making the right decision renting.?

  • Thread starter Thread starter bjmarchini
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bjmarchini

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I am divorced. 34. male. with 2 kids on weekends (11&13). I make about 52K.

am I better off just renting? I live in a pretty expensive area in Eastern PA where Condos start around $200K and most houses start around 250-400.

I figure a mortgage for about 250K will run me about 1300/month. plus tax which is pretty high in this area (4K per year) plus insurance and upkeep.

On the other hand, I have been renting a nice little 2 bedroom apartment for 5 years now for 725. It is a little lower than most in the area. Most I would be at would be $850 in other areas although I don't plan to move anytime soon.

I am pretty good at saving and use "pay yourself first" saving about $400 per month that I put in a high yield savings account (4%) and then transfer anything over 5K into a mutual fund (low risk). Plus I contribute 8% to my 401K and my employerer kicks in another 2%.

I pay about $400 in child support after taxes.
 
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