ACCOUNTANT EXPLAINS: Should You Buy or Rent 2023

[@frankodozi5349]

Another option is live with your parents 😂

[@santhoshmass]

whoops their bravado their culture their macho ness for boys, the boss ladies girls me me me is at stake. There is chance of coversations sensible ones could happen which they may never be ready. In short not a good option 😉

[@leoladystewart8613]

And save up so you can buy with a good deposit.

[@OmniCloud987]

For many our parents are renting just like us 😂

[@udaisinghkanwar7250]

The best 😂

[@j.vosier6786]

Yep, my rent went up to $2600 a month, i went back to my parents house

[@DuncanInUK]

I am in my mid 20s now and working hard to save up for a mortgage deposit. Nischa you are absolutely on point there about the psychological factor to consider. For me personally, since I moved to the UK a decade ago by myself, renting is a vital and nerve-wrecking process for me as I don't have that safety net of moving back with my parents (which I think lots of people don't either due to location, family relationships etc), so personally buying is the only ticket out of the rent-find-a-house-move cycle, which is a bit of a nightmare on its own.

[@MissMadelineMM94]

I relate to this so much

[@storm1110]

I relate to this although I'm not from abroad

[@ProfoundFamiliarity]

After a mortgage is paid off, the only costs are utilities, tax and repairs, which can hopefully be paid on a pension. Whereas renters must pay an ever-increasing rent into retirement, which may eventually exceed their pension, leaving them homeless. This is a fear for me personally, as a renter.

[@VinayakPadarha281224]

Went through the whole series of your "Accountant Explains" and the work that you've put in, is impeccable @Nischa! Great scripts, brief knowledge, beautiful presentation and gold standard narration of the different topics! Keep us posted with this life skill, the knowledge of finance!

[@renzildsilva]

Hi! I just wanted to take a minute and thank you for your awesome videos. It's not just about teaching basic accounting skills-it's about giving people a better understanding of their finances and helping them develop good habits that will stick with them for the rest of their lives. Unfortunately, these lessons aren't being taught in schools today. That's why there is a need to make sure that people are given the tools they need to build wealth and prosperity for themselves and future generations. These things are so simple, but with some self-discipline and the right mentorship, they could be taught to so many people. Unfortunately, due to lack of this knowledge in today's fast-fashion, instinctive buying and use-and-throw world around 90% of the younger generation will end up being part of the lower wealth gap.

[@marymurrow8869]

And starting with lures such as "free student overdraft" in the 1980s, even my generation (Gen X) has been trained to consider debt the norm. Better to have neither an overdraft nor a credit card - it only encourages unnecessary spending. But nobody taught us finances when I was at school, either. Unless, perhaps, you were doing accounting as an elective subject.

[@gavinr9107]

I purchased my home eight years ago during a 'peak' in Australia. In that eight years it hasn't gained a cent in value. It dipped then now only worth what I paid for it at the start of this year. I am fortunate that I have put a decent dent in the mortgage and have equity in it now.

[@dmsjt5181]

As a 32 year old mom and step mom of 6 who has made every life mistake under the sun, the biggest and most important life lesson I’ve learned is that whatever stage you’re in, make sure your habits and choices align with your goals. For instance, I went to college in a small town where home prices were already cheap, but then the housing crisis happened. Then the houses were dirt cheap. I came to a very cheap college with enough money saved that could have been used for a down payment as a first time homebuyer. Instead I just blew through all my money like an idiot. That continued to be a theme in my life until quite recently when I was finally forced through life experiences to stick to a strict budget. Later on even, my husband and I look back and kick ourselves for not buying a house with a basement, living in the basement and renting out the main part of the house. It would have covered our mortgage and made it possible to have more dispensable income and travel like we actually wanted to. Now we’re having to start over due to an awful housing market and many other factors.

[@mimid.8346]

I'm on the exact same boat but now that we've realized our mistakes, well eventually reach our goals. We got to be strict on budgeting.

[@Jar1990]

How do u budget and any advice a mom of 2 x

[@dmsjt5181]

@@Jar1990 we keep a spreadsheet with all our expenses and we use YNAB to keep track of expenses and categorizing them. We got rid of extra expenses we didn’t need, and got more serious about putting money into savings. The biggest thing is not spending more than you have. Just the awareness you get from tracking your spending does wonders for not overspending, in my opinion.

[@connmarymark4898]

+121

[@connmarymark4898]

8940

[@robm2245]

A buyer should not forget about the costs of sale. This can typically ad another 8 to 10 percent in costs upon sale of the property. Buying today would most likely create a loss over a 5 year hold vs renting. If you held for 10 years or longer, you would probably be better of buying.

[@AndrewJohn5544]

The one single reason i bought was for security, meaning i can make it a home knowing someone cannot kick me out with a month notice and also i can keep the property in a good state of repair where as my landlords in the past have done minimal work on the property's.

[@bupekabamba6017]

What you've written is the main reason in Zambia. If you own a home (which most of us build from scratch) no matter what happens you will always have a roof over your head. Imagine renting a property and you lose your job you can't stay in the rental without sturdy income. While if you own a home you have a place to stay while you figure things out if lose your job. And yes of course markets, circumstances and regulations differ from country to country. And for us mostly rental fee usually do not cover utilities. As a tenant you have to cover those

[@dlc2479]

​@bupekabamba6017 The difference is in the UK, very few can afford to build a home from scratch without significant debt. So if they lose their job and cannot afford the mortgage, they lose everything.

[@dappa0000]

This video is all over the place, its very very simple, in major cities where rents are high buy as soon as you can and in the best (LOCATION) for good capital appreciation, if you cant buy property just yet invest in either S&P 500 or Vanguard 500, in the long term property will out perform investments in these funds but its better to invest rather then leave the money in the bank. Outside of major cities you can rent as no point in buying in these locations as they have very low capital apprecation, so it all depends on LOCATION. You must do your own homework and see what locations are in demand by both buyers and renters and near good infrastructure ie transport, schools, amenities.

[@r1273m]

I'm 75 and along with my wife we bought our first house back in 1971. We have bought several since then and we also have properties we rent out. We lived through the mega high interest rates of the 1980/90's and saw many people in trouble due to overstretching themselves when buying a property as interest rates went into double digits. It's important to consider what will happen in the future if such a scenario happens as is currently the case. One thing to remember though, if you buy a house and sell it many years later but do not make a lot of profit on the deal, at least you have lived in it "rent free" for all that time. I am definitely on team buy it!

[@MattBidewell]

If you're team buy perhaps you should consider selling your properties your rent out to give the youth...a chance to fucking buy

[@r1273m]

A lot more people would be in a position to buy a property if they didn't waste money on drugs, smoking, boozing, tattoos, foreign holidays and the like. Scrimp and save and then buy a cheap terraced house in a low cost area. When you come home from work you spend your evenings and weekends doing the place up so that in a few years you move to somewhere slightly better. Rinse and repeat.

[@PhilosophyLines]

@@r1273m Hopefully this is a parody comment.

[@PhilosophyLines]

@@jawlig For me it's more the 'spend all your time outside work doing DIY on your dilapidated property'. I honestly don't think the numbers add up for people without parental help, not in London anyway. The people I know who've done what you're suggesting have basically had their home bought for them.

[@dlc2479]

You didn't live in it rent free. You paid rent to the bank in the form of interest.

[@huntsail3727]

Just found your channel. Love the clarity and simplicity of your presentations. Subscribed. Great job!

[@languagestutor4636]

Hi, I am new here!I think the best is to act! So, there’s not the good time to buy a house, but all depends on your situation! If you are ready to buy your first home, and you have the right deposit, just buy it. On the long run, buying is better than renting.

[@chikondibanda6479]

It’s not as simple…affordability counts a lot. Accounting for all additional costs is important

[@Judah-wk1ps]

One thing is for sure, No One will be taking there home/homes to Heaven, which is very soon to become an eternal reality.

[@andrewlunn]

Very well presented. Clear, punchy and concise, another great video Nischa

[@nischa]

thank you Andrew!

[@bradk7462]

Great video, also worth considering that house prices can, and indeed will at some point, in some shape or form, go down. Your house price graph only goes back to 2008 but look a bit further to the 90's and you'll see big drops. Consider also the amount of government intervention since 2008 (help to buy, low interest rates etc.) that has fuelled the house price increase bonanza. You're right to compare rent v buy in the context of 1% increases or 3% increases, but folk should also consider those numbers in reverse when making a decision. Christian Noone also mentioned a great point worth repeating: when comparing rent v buy, factor in mortgage interest repayment which is a huge amount of dead money (although long term you obviously end up owning an asset).

[@michaelcheng4985]

As a property owner in the US, it's way too expensive to buy in the current market. Will be closely watching to see if this changes in 2023.

[@ShortFunnyTales]

I hope prices fall in Miami too

[@overcomerbtboj]

I’m waiting too from what’ve i’ve been reading interest rates are projected to drop by the end of the year so things should improve for 2024 and 2025

[@dirtbikefun]

What's coming will make most recessions look easy, and on top of that you are up against the WEF trying to put in place more controlling obstacles, id is surprised if it gets any easier in 5 years unless you find a way to improve your wealth.

[@alexsoto5800]

yep, agreed. Was fortunate and lucky to have locked in my mortgage loan at 2.5$ right before the Fed's interest hike

[@lih1352]

@@dirtbikefun What is coming? I keep hearing threats/predictions but please elaborate

[@bunniewood]

I’m in the other boat I think renting is better. There are so many phantom costs with owning a home and it’s the only asset in the world where you are taxed three times! when you purchase, when you own and when you sell. Not only that but often the interest you pay (money for nothing) is almost half the price of the property. A renter could live 15 years off that. I think if you rent but also invest into shares you will have faster growth and less responsibilities. I like the freedom to move when I want, where I want, closer to work if I need. I’ve never had a landlord kick me out. We have a lot of made to rent luxury properties here so I guess I’m lucky. But what if you buy a home and have a nightmare neighbour??? You’re stuck!

[@Anonymous-ez8rt]

I agree! My old neighbour was a nightmare!

[@nickbradley6218]

You're a fantastic auditor, and think this is a great way of explaining the pros or cons. I would say 1% for house maintenance is optimistic when you factor in life spans of boilers, general wear and tear, as well as people's need to freshen the appearance of their interiors over time.

[@kylethomas8655]

The fact that you discussed opportunity cost tells me you are truly an accountant! Love it

[@brasso4984]

Rent, so when I've had enough of our joke of a government, I can flee to a country that 80% cheaper and not worry about being a slave to a lender for 40 years.

[@sidhu0081]

5:49 I think that you are equating the down payment return and the property appreciation. Which I think is not right because down payment is like 10 % of property cost where as when the price of the property in creases then then it happens on the entire 100%. Which is very very different.

[@mariiamuzykantova7004]

Thank you Nischa for your work. ☺It would be nice to buy a property in UK but it seems to be not easy if you are non-resident.

[@kirankumarsukumar]

People underestimate how rare is to find a couple who are both good in finance and investing. Rare. Very rare.

[@richardc316]

I bought my first property at 19 (40 now), best decision I've ever made. I've heard all the arguments for renting, but none of them make any sense to me. My mortgage payments are only half the cost that renting my house would be each month. Yes, you normally need a 10% deposit (£20,000 on a £200,000 terraced house), but you're not really losing any opportunity to invest that because you ARE investing it in a property, which on average go up just as much as the S&P 500.

[@machine0182]

Currently as a first time buyer it no longer makes sense for some us I would say. In my personal situation I have a really good deal renting so the interest on the mortgage alone costs more than my rent and with house prices set to fall substantially I think currently it would be better for a significant amount of first time buyers to hold off and buy at a later date.

[@freddy21ify]

Buying a house to live in is not an investment!!

[@richardc316]

@@freddy21ify Yeah I hear that all the time, and 'technically' your right, BUT if I can buy something that is almost certain to increase in value (and a rate to easily account for any maintenance costs), then it's good enough for me. I have money in stocks too, but my house is my favourite non asset (I know it's not actually an asset, lol)

[@del4668]

@@machine0182 Where is this magical place you live that the rent is cheaper than a mortgage would be on the property ? On the open market I would argue you never find a property to rent for cheaper than you could get a mortgage on the property.

[@bg1616]

Totally agree. Rent never goes down but a repayment mortgage usually does. If you buy at 20, your accommodation will probably cost next to nothing by the time you hit 40. Either that or you live in a much better house or have a big sum if money in the bank from a sale. Renting only makes sense in the short term.

[@annrrf1464]

Closing costs are £16k???? Which solicitor are you going to? Slaughter and May?

[@PrezidentHughes]

It's a disgrace that somewhere to live and have a life and security is now a trivial commodity. In an ideal world, everyone should be able to own their own home.

[@si-hv3nu]

They can, it’s a choice

[@ralisimon4848]

Why??

[@ElmoTrades]

Financing a property is pretty stupid. Apparently everyone talks about equity on the home like is guaranteed. Yea lets drop this prices by raising interest now everyone is upside down on their loans massively. Good luck!

[@dutch6947]

Nice video. House prices are currently falling and expected to fall resulting in a loss of equity if you were to buy now. Good comparison but maybe include the possibility of depreciation. Also, the government expects people to be unable to pay their mortgages hence they set up the mortgage bailout for those on UC in the autumn budget, not definitive but an indication that interest rates are likely to remain constant or increase further.

[@bushwhackeddos.2703]

Mass immigration means demand will always outstrip supply, until they concrete over the whole country.

[@Dondaddyh]

Great comparison, fantastic content, I would love it if you slowed the speed slightly, I only rented for 6 months, many years later have a very healthy nestegg

[@christiannoone5869]

Really great video! Really well summarised and the numbers were articulated well! Another thing to consider as well with the buying scenario. Of that £1,780 a month, because interest rates are so high, the interest portion of that monthly payment is £1,350 for the first 5 years which is dead money and principle is around £400. This is due to the amortisation schedule. So when you compare that the dead money you’ll be paying from renting £1,560 and mortgage dead money £1,350 + maintenance to fix anything that breaks, people say renting is throwing money down the drain, renting actually is throwing less money down the drain now. Only difference is the dead money goes to a bank instead of a landlord. Issue is when something breaks, the bank won’t pay to fix it.

[@nischa]

Spot on - great point

[@MyJacopo96]

Generally 1350 of interest and 400 of principle is the worst case scenario due to high interest rates.

[@christiannoone5869]

@@MyJacopo96 Exactly. May as well rent the place

[@varunsia7609]

@@nischa iam looking to invest in property in uk ..iam indian

[@BMW-tr3nf]

Calculation of what you said is true. One thing you haven't mentioned that I think is very important is that you may save some money by renting but will never own the home. By buying in the first instants you will pay more because of the interest but the home will eventually be yours.

[@johnalex9484]

This video is informative but also makes me want to jump off a bridge because both renting and buying are unaffordable and by the time I’ve even got 10% for a deposit for a house.. I’ll be dead 🤣🤣

[@tusharimdad9595]

Really appreciate your videos, Nischa - very clear explanations and great choice of topics. However, I do think you spoke too fast on this - I had to double check my playback speed wasn't 2X! Also more clearer visuals and side by side comparisons as you were speaking would have helped as there's a lot of info to digest.

[@Yoonc]

Thanks Nischa. Such a crisp and clear presentation is well appreciated... After not-so mathmatical analysis, I did purchase last year prior to giant rate hikes, but wondering how the selling cost should be included in the calculation... can be almost 7% in the US.

[@himanshub16]

Hi Nischa 👋, love your explanations. To the point. I find one thing missing in all the analysis is the part where you miss out on settling on a good locality. If you buy a house today 10 km from the city centre, the city is likely to grow and that suburb in 5 years would become a mini city in itself - see Delhi NCR for example, or even Bangalore or Mumbai. But if one rents all the time, then at the time of buying at later point in life, the person will have to settle 25 km from the city centre because the city has grown and affordable places are outside, making it harder to commute if needed. This is something I miss in almost all analysis videos. Thanks!

[@rahoolmukherjee]

Very nice video... recently I read an article about a topic which was about whether to invest a lump-sum in a collective investment scheme with a wrapper (such as ISA, bonds etc) or should you use the lump-sum to reduce the mortgage debt ... Surprisingly it is good to invest long term (at least 5-6 years) and the net return (after all the fees and charges been deducted) is higher in comparison to the value /equity gained should someone overpay and reduce the Mortgage debt down... Coming back to your topic, I really loved your video which is extremely specific, prudent and informative as well... excellent work and many thanks !!!!

[@nischa]

I was trying to explain this to someone yday! You’ve summarised it perfectly - thank you.

[@rahoolmukherjee]

@@nischa I am sure you will do it better Nischa...will look forward to your next video!!! Thanks!!

[@j.vosier6786]

Where can i find more info on investing?

[@NetITGeeks]

Buying is also the far better option in most parts of Canada as of now. However, in situations people have brought a house in the higher up on the housing market curve (past few months). Now the housing market is expected to cool down a bit in Canada, this will result in a net loss in the short term.

[@fadifadi174]

Can you please make a video on how you pick your angel investments? Just an idea for future video 😄✌🏻

[@nischa]

That is a good one! Thank you :)

[@miznikki2u]

Times are tough but we have to keep going. I am 32. I hope to be primed to buy a house with my partner by early 2025, fingers crossed. Thank you for your video!

[@Vraellko]

Good luck, I am in the similar situtation. Fingers crossed :)

[@bg1616]

Good luck, I bought my first after that age.

[@JackBellVideos]

Been trying to buy a property for a year and banks seem to have gone into an ultra-cautious phase. I've saved £50k and need to borrow £260k and Skipton's will only give me £200k with a self employed income of £80k. Madness. So I'm now considering renting while I continue to save to buy in 1/2 years from now when the market has hopefully somewhat healed.

[@ratsliveonnoevilstar1]

@Play Google dividends no doubt

[@rufdymond]

This is a interesting topic - I was actually speaking to someone once who put an interesting slant on this whole house buying thing. I only have to go off what he told me and I have no idea if what he was telling me was legit. He basically told me that he sold the property that he lived in when he was 29 - but instead of buying another property he invested the money and has been living in rentals ever since, he was I think 57 when we spoke. He claims that his investments have now grown to a point where he can buy the property he wants cash, and still have a sizeable sum left over. His argument was that if he would have stayed on the property ladder, he may well now be mortgage free, but would not have had anywhere near the amount in his investments that he will have now, even after buying a property. It was an interesting take on things - I couldn’t help thinking though that this wasn’t much different from downsizing your house at 57, buying a smaller house and putting the remainder in the bank. He never disclosed numbers but did suggest that his investments were worth a sizeable amount…….

[@bg1616]

Main thing is to buy as early in life as possible. "As possible" being the key thing. Also, from experience you can pit mortgage brokers against each other. They look harder for a deal.

[@marymurrow8869]

And what can you do if you're older? Is it still possible to buy a property if you are over 50? (I mean over 50 and not a millionaire). People put me off a few years ago, now I'm a few years older!

[@bg1616]

@Mary Murrow I don't see why not Mary if you have a decent credit rating. If 50yrs old is your earliest as possible and you can get a 15yr mortgage going by 65 retirement. I have 15yrs left on mine anyway technically. Owning your own place will likely drop your accommodation costs over the next 20 years in the long term, rent will increase them.

[@Uncommonsensetoo]

I lucked out when I bought a 4 bedroom house when prices were low after the 2009 housing crash and that has worked out great for me. I've been renting out rooms which covers my mortgage and taxes. I also pretty much do all of the maintenance and repairs myself. I essentially have free housing plus significant increase in equity and value of the home. When you rent out you can also deduct a large amount from your income and expenses like depreciation and cost of supplies and improvements etc. at least here in the US.

[@ritz5770]

Nischa, first of all thanks for all your contents. Just recently came across your YT videos. Is it possible for you to do a video on what products do you recommend to a young person to start off on the journey of regular savings please ?

[@venkatakoduru1451]

Great content as usual.....More videos on property investments please...with your opinion on best areas in England to invest in 2023?

[@Kiwi_Dave]

Renting you have zero security vs owning. In general renters have significantly less wealth than home owners. Renting is fine if you are investing elsewhere, but that would be an extremely low number, most renters are just living from pay week to pay week.

[@slaveoth5114]

Renting gives me piece of mind. No worries of bank's repayments. If I had a mortgage I would be the most stressed person on the street lol.

[@Madzguy007]

@@slaveoth5114 Does it not stress you that with renting, you'll be poorer in the long term, most likely by a few hundred thousand dollars?

[@davidadamson3664]

If you own a $325,000.00 home where I live, (Southern Chester County Pennsylvania USA), annual property taxes on this property will be about$8,628.75. That is $719.06 dollars a month. ...And it only rents for $1,450.00? (Yes, I used dollars but you get the idea).

[@MahoganyHues]

The UK is mad. How are people expected to find £65k upfront? Not everyone earns £90k

[@rayw4589]

Bank of Mum & Dad

[@ChadChamberlainOperatio2088]

very informative video... thank you. also the buy vs rent calculator is really spot on.. cheers for this

[@merc340sr]

Oddly enough, in Germany, a wealthy country, most people rent rather than buy. Figure that one out!

[@psycheinc-theSLC]

You have done amazingly well Nisha and so well deserved. Very clear, concise and informative content. Psyche aka Psyche Thompson UK 🌹

[@j6gossipgirl]

Great video, so on point!!! What may be an idea for another video is buying to use property vs. buying to rent out. In Germany for example we have really nice tax benefits for renting, basically almost all of the costs of buying, renovation (if any), maintenance, and mortgage interests are tax deductible. Not sure if that is the same elsewhere, but on top of the rental income that can be really nice bonus.

[@elmanitasdeplomo]

Here across the border in the Netherlands a lot of building/apartment owners who rent them out, are thinking of selling because of new laws. The housing market is completely messed up here.

[@happymaskedguy1943]

If you can flat share with the right people, or live with your parents and save a LOT of your income for 10 years, you have a chance at getting a deposit for a small home/ flat with the right lender. It’s not always possible, but when it comes to where you live, buying is ALWAYS better than renting.

[@DrCorinneDevin]

Thank you so much for your insight. One of the struggles I have is my job moves me every 2 to 3 years so I’m stuck renting. If you have any insight moving forward, please let me know. Right now I’m just saving money for a future house, when I will be in a location for more than three years.

[@RogerPack]

You could buy then turns it into a rental when you move? Not sure how long distance lacking works but...

[@RajasundarNainar]

Your videos are insightful. Thanks for sharing. Housing market widely expected to fall next couple of years.

[@nischa]

Thank you!

[@pb6096]

Yes that’s right they fall 7-8% and rise 30-40%!!!!!!

[@eliefeinstein6182]

Thank you so much for acknowledging opportunity costs! I may have missed it, but did you account for property taxes?

[@sam11148072]

Buying a house on debt, to live in, is one of the worst financial decisions any human can make.

[@Flash16xx]

This comparison assumes that the person buying or renting can afford either. Well of course if you can afford to buy with the proper downpayment you would. Otherwise, you rent. I like most of your vids. This one not so much.

[@24sell]

It was 10 years of property prices growth now will be 10 years of prices declaining.

[@amielluzon1951]

love your content!! can you make a video on employee VS business owner?

[@24sell]

Depends in which country :) in Poland we have APR 10% for mortgage loans :) So it is obvious to rent if you pay 3000pln for and 5000pln for buying (prices needs to plummet drastically) and there is also own contribution, renovation costs :)

[@tomv7986]

It only got way worse in Poland, didn't it? Western-European prices, sky high interest rates and mediocre salaries.

[@manish4sid]

TBH I wasn't listening to a thing she was saying. I've never seen such a bomb ass Indian girl sound so white/British in my life!!! Even tho we got independence, British won!!

[@vioreliachim5646]

Can you do a video on "Should you live in your mother's basement or garage". Please!

[@minkxz8037]

Not sure why people debate this. When you own a home and want to leave, sell it and get some money back. When you rent a home and want to leave, move out and get no money back. Pick one 😒

[@sanaanimtiaz3897]

This is more or less in terms of buy home for investing, not for buying home to live or pass on to future generation, it would be nice if more accurate info was provided with pros and cons for both, renting and buying

[@GorgieClarissa]

I'm paying more for rent in my 525sq ft apartment with ZERO amenities than my friend who OWES a whole freaking house.

[@yasirnoori4848]

I agree with most, but I don't think stamp duty + solicitor fees + valuation = £16250. Assuming you are not a first time buyer (which makes stamp duty free) and not buying an additional property, the stamp duty is 5% x (325,000-250,000) = £3,250. Solicitor fees is

[@nischa]

Always better to be conservative, any leftover is cash in the pocket :)

[@niddynoddy]

As an average person, putting in the S&P is a good thing to do, but do you not pay taxes if you withdraw the money? So even if the value rises by 7%, there are still taxes to be paid when withdrawing the stock (considering a 1 year span), right?

[@vaskes123]

All your videos are very interesting but many of your international viewers wish you talked a little slower so that we could follow you.

[@rahim1404]

You are very well spoken and make complex scenario to a more simplified language to general public. It would be advisable for you to consider webiner sessions for your regular youtubers.

[@nischa]

thank you!

[@user-wt6zf4ek9k]

A lot of folks have been going on about a January rally and said stocks that would be experiencing significant growth these festive season, any idea which stocks this may be? I just sold my home in long Island and I’m looking to remunerate $420k into the stock market before stocks rebound, is this a good time to buy or no?

[@itssanj8449]

Fantastic video, it was really helpful! Subbed

[@jseverene4789]

I admire the way Nischa outlines out this information, so amazing, even got me into re-evaluating my life financially and i,m from far from Europe. Nicely done Nischa

[@ssmaitra1]

Rent vs Buy is the stupidest comparison discussion as the calculations are too complex (mortgage, taxes, exemptions, maintenence, depreciation, appreciation, interest risk, geographic area etc.) for most people. Don't think of a house as a Financial Instrument. Think of it as a CONSUMPTION. Only good reason to buy is if you want to enjoy a CUSTOMIZED EXPERIENCE aligned to your personal taste & lifestyle.

[@Zale370]

Real estate does not not actually appreciate in value because the currency used to purchase the property loses value over time. This can make commodities seem like they are gaining value.

[@thetiesareoffpodcast]

Very insightful balanced opinion, thank you... 🤞

[@coulsonjackson]

I don’t even have the 25k for the deposit neither does my girlfriend. When people ask are you buying I just laugh

[@greattrainjourneys8076]

Nischa can I ask u what happens if someone sells the house in between the mortgage tenure say for eg Mortgage tenure is 10 years ,he or she sells it say in 5 years How much loss is there considering all parameters.

[@shanilshah7084]

Very insightful!

[@danielsechrist4410]

I can't believe people rent the same place for an average of five years in the UK! Renters I know in Denver sign 12 month leases and move about every 1-2 years until they can buy a home.

[@chancerobinson5112]

“There is not acre of developed land that that wasn’t initially stolen.” The justification for predatory landlords escapes me. Human beings are the only conscious animal that locks up shelter against their own kind.

[@wccgroundsman]

over last 15 years millions bought when interest rates were historically LOW and House prices were at 'cycle' highs. A very painful lesson for those that never appreciated the risk they were taking.

[@foxyfoxtrot4233]

Regarding the value increase of a property - that is of theoretical value if you live in the property as you cannot use the value increase (unless the bank recognises the value increase and lets you use it as collateral against another loan). So I would generally refer to a house that you live in not as an investment, but as consumption choice (just like rent). Regarding the opportunity cost of not being able to invest the money that goes into e.g. maintenance and interest payments: this is very valid but only applies if the person renting is disciplined enough to actually make the investments. Lastly, owning a property where no landlord can just terminate the lease is a very reassuring feeling which cannot be measured in money but for me outweighs some of the correct rational arguments.

[@Agent77X]

You can find a home that is not current lived in a upper class neighborhood that is around $2 to $10 million dollars full furnished and simple live in it for free! When the home owner find that out, you still get between 3-6 month of free rent after court proceedings begin to evict you. 😊

[@hakshustletv]

One thing I've noticed or I "think" anyway is, a lot of my friends that invest in property love to talk about the potential ROI 5-10yrs from the time they've purchased the property but rarely include maintenance costs in their evaluation. I think the best combination is having equity in the property but hoping that either cash flow (from rent) or the increase in the property value will cancel out inflation & maintenance costs, and the other will be the net profit. If the numbers are really crunched thoroughly, a lot of homeowners that live in their homes don't make as much net profit when it's time to sell as they give off unless they happen to be in a booming market. I find that those who strictly buy properties to turn a profit tend to really go over the numbers in depth.

[@WarV9]

I'm not so sure about this. Most of your mortgage payments will be interest, especially if you take a deal where the rate is variable and dependant on the bank of england rate. Also, if you plan to sell within 5 years, you have no guarantee that the price of the property will increase. I bought a property and now having to sell it for less than I bought it for and the equity is basically gone. as most of it was interest so didn't make much of a dent in the mortgage amount I owe.

[@dlc2479]

Another thing to point out is that you actually can't do whatever you want with your property in the UK. If you're a leaseholder, you need freeholder permission to make any significant changes to your flat. Even if you're a freeholder, you need planning permission to make significant changes to your home. Owning doesn't necessarily mean freedom.

[@StatusCeleb]

The UK economy is set to be the worst economy within the developing world. Just take that into consideration when thinking about whether or not inflation is going to be better or worse.

[@jamesshephard2013]

So what happens in retirement? If you're renting, you still have a significant monthly expense and it's likely your income (pension) is less than it was previously (whilst in full time employment). In a mortgage situation, you probably own your house by retirement and so surely the better option?

[@davidgolf3245]

I own my house, but I just wanted to click on to say that you are absolutely stunning. Enjoy the rest of your day and happy holidays. Take care.

[@hiteshjogia9590]

Unfortunately there are too many what if scenarios. Your commentary around investments is questionable

[@MadameGerardineSephora]

Wait! What?! You still need to pay the tax even if you've paid the house in cash (The full amount)?

[@JackKing12.]

Do neither...live at the parents 😉

[@24sell]

I will buy but in Italy they have good prices!

[@leomeer]

Great content, thanks! 👍

[@francisexperience]

Saving £48,500 is a hell of an ask!

[@diveshbalani9706]

Actually i dont think like what you think.... we all have monthly payments and if the rent can take care of the monthly payments and also have profit than good... you said about 1% for damages to the the house... thats is why we take deposit rite so that if they spoil it we use their money to repair the stuff.... but i will always prefer to buy its Passive income and i really dont want to work when i reach 60 just want to spen money and enjoy with my wife and of course my kids

[@rp5339]

I fully agree that a house is a very good long term investment but knowing the valuations are greater than they have ever been and a huge disconnect between prices and wages, I would not take debt to buy a home knowing the rising Inflation and higher interest rates. Everytime there's been an economic crisis the governments especially in the so called developed countries have called on their central banks to print money and save the day but we are now at the end of the long term debt cycle. It is not the homes or other assets getting pricier but the devaluation of our money.

[@turuncueller]

Summary: Depends

[@ZekeMagnum]

I got out or renting as soon as I could! Rent here for a 2-3 room apartment is about 1.000 euros/month. That 12.000 a year and 120.000 euros in 10 years!! That's insane. The day you move out after 10 years you just spent 120.000 on ''nothing''. Easy example, say that you have a mortgage with the same monthly payment and assume 50% is interest rate, you pay your future self 60.000 instead of giving it away. For me it doesn't matter if a house is a little bit more expensive than renting. I can't stand the thought of just giving money away

[@keys6]

Absolutely correct