Should You Buy A Home or Rent? | Renting Vs Buying A Home

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Deciding whether to rent or buy a home is one of the biggest financial decisions we ever have to make. And depending on your situation at the time your making the decision either choice could be entirely valid. Today we're going to be going over the process of figuring out whether renting or buying is right for you.

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[rereAL]

It's better for me to rent and invest the difference at this point in my life. If I had a home all the extra costs would prevent me from investing as much as I do currently.

[DeRothschild]

Buy a home, rent the home, and live in a small apartment.

[littraders]

house is a security, not investment... I did tell this several time to my students.

[stephthinks]

This is fantastic. We find ourselves in an expensive city, making okay/good money but with this conundrum of a question. So thanks so much!

[vpride]

I was just thinking about this! I made the decision to start saving for a multi-family unit for house hacking (live in one unit, rent the others) for my first property. Great video!

[DTR]

Gr8 video. Please also do a video on other things to consider

[epiccoconut]

Yes I want that video!
I am laying in bed watching these back to back like it's a sitcom re-run. I am half asleep now but don't want to stop; your material is too good! Nevertheless, tomorrow(well, today now) is another day. Good night(good morning😆) and thank you

[MarkUnique]

I like how this compares buying a house vs renting, as opposed to buying vs renting a house, which so many of these types of comparisons tend to do.

[CyndiLH]

I definitely want to see the video on the non-financial considerations that you mentioned near the end :)

[truthteller]

Use the 5% rule as a good baseline to find out what’s better. Take the house price and times by 5% then divide by 12. If rent prices are cheaper for the same place, might be better to rent.

[boorules]

Excellent video, as always. It’s surprising how close the math is, as well as how much factors like how often you move and how much you pay in closing costs matters.

Sadly, I think the reality is that many renters do not “invest the difference” between their rent and what they would have paid in owning a home, either due to necessity or lack of knowledge from videos like this.

Renting, one could argue, also poses more risk in the form of a landlord that could decide to not renew a lease and therefore force you to move, perhaps to a lower quality or higher rent place.

[BrentsTreehouse]

one downside of owing a mortgage is you have to purchase home insurance, which is a racket with high deductibles and only really valuable if there is catastrophic damage. With interest rates so low, monthly insurance costs can be half of the mortgage payment for many.

[BrentsTreehouse]

the flip side of ownership is responsibility, and homes can be headaches as you are responsible for many more inputs and outputs that are not fun. The fun stuff of ownership are small compared to the un-fun. some landlords can suck, but renters can be discerning and find a decent landlord. It is true that the quality of rentals can suck in some places, and renters can be treated as second class citizens, and that is stupid and unfair.

[andrewb]

Another great video. You've really been filling in your rent vs buy playlist lately. As someone who already owns a home and doesn't intend to sell any time soon, I've got to be honest I was hoping for something different this week. I of course continue to watch however, because you put out great videos and I always love expanding my knowledge on these things. Thanks for all the effort you put into your videos, keep up the great work.

[kidnpigtogether]

Don’t do it!!! A home was the worst life mistake I ever made as a human being. They brake, they keep you broke and in constant debt, I would forever give my landlord a happy rent check, plus more for the peace of mind I enjoy. Every room becomes an abode for more and more stuff you don’t need. Constant repair and maintenance headaches. When you buy a house you become a whore to home improvement stores. Less is more, no wonder many marriages fall apart because of financial stress and strain. Don’t let traditions manipulate you from a happy life. It ain’t worth it folks, don’t finance your own mental trauma and misery.

[chrisjohnson]

I think it's important to also sometimes put a price on the value of the other luxuries of owning a home; ie yard, space, neighborhood, etc

[dfs-comedy]

I've owned two houses in the past and am currently renting. The annualized return on the first house was a paltry 2.9% and on the second was 5.1%... but that's not counting money I put in for repairs and renovations.

Any investor knows that the best long-term investment is diversified in terms of market sector and geography. Owning a house is a large investment in a single sector and single geographic location... which is very risky.

[itsasetup]

Should you rent or rent. Property taxes are rent. Only difference is who mows the lawn or fixes the toilet.

[BrentsTreehouse]

Buy a duplex or triplex and live in one unit works well.

[stephenr]

Good video. But I think you left off repair bills. A house will need a new roof and A/C unit eventually, for example.