Bought a condo to save on rent money. Unable to sleep, worried that I made a wrong investment, should have negotiated harder overpaid by 10k or so. Has anyone been through this? Can you please help?

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Renting is always better than buying financially from an IRR perspective. Buying is better from an emotional perspective.

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There are many rent versus buy calculators online but I like the NYTimes one best. You can see all of the variables and slide them around.

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It’s fine. In the great scheme of things in life, this is actually small potatoes and for sure not worth staying up at night worrying over. Live and learn and carry on. It’s totally ok. You are beating yourself up over this and causing your own pain, so let’s stop doing that. 🤗. Let’s practice different thoughts that also feel true, like “I learned something by going through this process, and that’s ok” - something that feels less dramatic and negative. Enjoy your new condo, you earned it!

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Thank you 😇😇

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Dude, literally the same here. But it’ll be fine

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Welp, Ive been up since 4am second guessing my decision now too

I bought my first house 6 years ago. Was worried too. But now, as I’m about to sell and move, I’m happy. It’s appreciated by about $200 k. So, while I paid higher property taxes (maybe $50k total? over the years) and Maintanance etc, it turned out a great investment. It also added a certain value you can’t price. Living in a nice home that felt less temporary than renting.

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MC2 fair observation. Not super tuned in to numbers. But bought a house for about $500k which is selling for about $700k. So the money seems worth it to me too

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I overpaid 30K on my home 2 years ago. Took me a year to get over it. I'm fine now as housing prices have gone up and I will recover it when I sell. You'll be fine.

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Thanks pwc1

When you pay rent — the total rent is a loss . Don’t forget that

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True thanks

When you buy, the costs are
- interest
- hoa
- property taxes
- maintenance cost
- brokerage fees of 6% (buying and selling)
- opportunity cost of placing the principal in higher yielding S&P500 at 10% vs. real estate appreciation of 5% (both averages)
- opportunity cost of not being able to move somewhere else that may pay better


When renting, cost is rent only.

Weigh it over 15-30 years. It’s not so simple.

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This is so true. I think it’s an old school mentality that you’re throwing away money if you rent. There’s the opportunity cost of being mobile. Weighing whether you should save more for a down payment prior to buying or paying for PMI/more interest is also not so simple.

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Owning a home goes back to the old concept of settling down and living and working at the same location for 20-30 years. These days, the workforce is ultra mobile. Unless you don’t intend to ever move out of state, renting is better than owning. No baggage and less financial downside, in addition to what Principal 1 says.

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It’s a good move man. Think of it as forced savings. First house is always stressful until you get used to your finances again. I think my first condo put me paycheck to paycheck.

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From a investment POV, buying a single family residence makes more sense is you are house hacking

-appreciation in value
- tax benefits
-mortgage pay down/ equity building
- subsidized COL/ cash flow

It’s fine OP

My house is valued at what it cost to build it 20 years ago. (Yeah, it is in the Midwest.....sigh!) However, I love my house. Don’t second-guess yourself for a situation you can’t change- the sellers aren’t going to lower the price $10k at this point. Enjoy being a homeowner and save your worries for more important things that you can change. Good luck!

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