Renting vs Buying A Home (The Truth)
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Should you rent or buy a home? In this video, we'll touch on financial and non-financial factors that you need to take into consideration. We also do a live analysis using a rent vs buy calculator to find out the real numbers.
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Chapters:
00:00 Intro
00:46 Buying Renting Pros
03:58 Buying Renting Cons
06:14 Policygenius Spot
07:59 The Math
WHO AM I? 👇
If we haven’t met before – Hi 👋 I’m Marko, and I’ve been investing since 2006, and I got my finance degree in 2010. My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos reflect my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. You must conduct your own research. I am merely sharing my opinion with no guarantee of investment gains or losses.
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My Home Affordability Spreadsheet (Join and go the membership section of the comments):
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Rent Vs Buy Calculator: https://ofdollarsanddata.com/rent-vs-buy-calculator/
Nice breakdown, but I feel like we just kinda glossed over the fact that a 420,000$ house is probably on average ALOT nicer than a 1,800$ rented apartment, no?
You could save a lot of money also by living in the “average cost cardboard box” for 30 years, but is that really a useful comparison lol👍
Thank you Marco
You are very welcome!
Now this is a throwback white board video 👍🏼
“Inflation 3%” – Insert Ray Liotta laugh
LOL!
Like my Mother always told me, “Buy it before Blackrock does”
Definitely good value in this video.
I have owned and rented. I’m currently renting as I like the flexibility. I can practically go anywhere anytime. Selling a home and buying one for the same price will cost you a minimum of 10% (at least here in MD) unless you can make a deal without real estate agents. 5% real estate agent, 2 transfer tax, loan origination, title insurance, appraisal fee, etc… Not to mention the cost of fixing up a home to get it ready for sale. As you stated, one really needs to own the home for at least 5 to 10 years. I thinks it’s probably closer to 10 years for it to make sense.
Good luck retiring. Housing cost should be a controllable part of your retirement. Renters will pretty much always pay more in rent every year. When you retire at say 65 and rent is around 3-4k a month just wait until you’re 80-90 and it’s 6-7k a month. You’ll need considerably more cash reserves or investments to retire without owning a home.
Another informative video Marko, keep them coming!👏
Thanks, will do!
Just so you know, you are finally showing up in my recommended. I guess I have to comment in order to keep you there.
thanks Jimmy
@WhiteBoardFinance yea my recommendations haven’t shown for you in months! I have you on showing me a video everytime you post too. Odd.
Same thing here. You contact is 10/10 but it seems like the algorithm doesn’t particularly like you
@ youtube thinks i like meme coins and crypto scams.
The algorithm doesn’t like you because you’re educating the masses.
I came across this vid purely based on algorithms. Never heard of this channel
👍🏿
Love the message at the end. Great stuff as always. Thank you.
Glad you enjoyed it!
Yay! This video showed up up in my recommended on the homepage. Your videos are always awesome. Really appreciated how you gave a fair perspective of each and then shared Nick’s calculator at the end. For me, renting is the best route and then investing the difference. I love the flexibility and lack of worry on maintenance and repairs but totally see why some buy. As long as the numbers shake out for you, go for it. Long time renter for me for awhile!
Only thing I’d add is when you buy a home (younger buyer) don’t think of it as an “investment” but think of it as home. If you make a gain great, if not it’s still home. I’ve always thought about my investments and my home as separate.
Yes. Don’t stress the investment part too much. My wife lost value on a condo early in life, she was upset that her outgoing equity was below the down payment. I had to assure her, it was still a good purchase, as she still got shelter out of it and had more money than walking away from rentals. And the home we bought, had the same value impact ahead of our purchase so that part washed, anyway.
Algorithm is algorithm but as a long time viewer, the ending not being a joke and just real talk is exactly what I needed to be reinforced upon – thank you Marko, forreal real 🙌
Congrats on a million subs!
Buying the home is one thing, now keeping it is another.
Even when I pay off my mortgage I’m still going to be paying $600+, probably $800+/month for insurance/property tax. I think very few people make money owning a home, and moat pay substantially more than renting. If you don’t have children I would rent 100%. All that extra money you save renting compared to buying a home put in the market and short term and long term you will be way ahead.
No idea why the algorithm doesn’t like your channel. You’re definitely in my top 3 of financial channels because you don’t overhype and everything is extremely straight forward. Keep up the good work.
I’m in my mid-30s and I decided long ago that I had no interest in starting a family. I don’t think it will EVER make sense for me to tie myself to a mortgage. Also in my area it is more than $1k more expensive to pay a mortgage than it is to pay rent. And we’re talking with a 20% down payment.
This generation def thinks that buying is the next best thing but it’s not always a financially better decision, many do it as an emotional one. You have to factor in all the phantom costs of buying a house and compare that to investing that money and align it to your goals! Don’t just buy a house because you can!
Renter for 10 years home owner for 17 years… Owning a home, in my opinion, offers so much more on so many levels. Even if I have to replace the water heater, HVAC, French drain the basement, those things, though they seem expensive the value you gain from doing these things or having to have them done is priceless and the home is YOURS!