Just using some nice round numbers in the hope that it would help you understand the concept and using your original $500 number. But you’re right, given current interest rates a 10% difference the first year isn’t likely without a large down payment.
Make it whatever you want. 2.5k vs. 3k, 6k vs. 7.5k, 10k vs. 13k, it doesn’t matter. The only thing that matters is you understand that after a few years the monthly advantage to renting disappears, the tables turn, and the renter pays more for the rest of their lives, and a lot more when the owner is done with the mortgage. Or until they wise up.
You’ve been given bad information. Don’t ruin your financial future by stubbornly clinging to it. The best time to learn about personal finance is yesterday. The second best time is today. It’s never too late.
Just using some nice round numbers in the hope that it would help you understand the concept and using your original $500 number. But you’re right, given current interest rates a 10% difference the first year isn’t likely without a large down payment.
Make it whatever you want. 2.5k vs. 3k, 6k vs. 7.5k, 10k vs. 13k, it doesn’t matter. The only thing that matters is you understand that after a few years the monthly advantage to renting disappears, the tables turn, and the renter pays more for the rest of their lives, and a lot more when the owner is done with the mortgage. Or until they wise up.
You’ve been given bad information. Don’t ruin your financial future by stubbornly clinging to it. The best time to learn about personal finance is yesterday. The second best time is today. It’s never too late.