RENTING vs OWNING A HOME IN KENYA: WHICH ONE IS CHEAPER? | SHOULD YOU BUY OR RENT A HOME IN NAIROBI?

[@terrynjoki3086]

Nice conversations

[@JamesM-wq1vr]

The assumption was that someone has the 10M upfront so it’s an opportunity cost argument. If you don’t have that amount upfront, which would be the case for many Kenyans, then renting is expensive.

[@mikaling]

no, this doesn't make sense imo. when you say ownership is more expensive than renting, are you taking time into account? how could renting possibly be cheaper if i'm renting for my entire life vs paying 10M (plus some interest) for whatever period, after which i don't have to think about that monthly payment anymore? 10M spread over monthly, 42k payments comes to about 20 years of payments. so if you're renting you'll have paid for the value of that house in 20 years (or less, because rent never goes down) and then you'll CONTINUE to pay on top of amount until you die since you've decided you're never going to own/buy. so assuming you stay in this one home, you'll have paid the amount of the house and more if you rent indefinitely vs if you put that money into buying something that you'll eventually own and stop paying for.