Why Renting Is A Better Investment Than Owning A Home

[@TheSuperNick1134]

My thought is to rent until I can afford a nice little house in cash. One thing I can't stand is being in debt. Been there, done that. Never again.

[@jmbpinto73]

Debts (or loans) are powerful tools, if used correctly.

[@TheSuperNick1134]

@@jmbpinto73 I agree, however, personally, I like having the security of knowing that I don't owe money to somebody.

[@jmbpinto73]

@@TheSuperNick1134 I understand that. But living on someone else´s house, you owe them rent. If you take a loan and buy your house, you owe the bank. Same deal for me, except the bank will let you have the house at the end of the contract. My grandfather bought the property where i'm in today, in cash. Those times are long gone. There is another aspect, if you can rent cheaper than the mortgage+taxes+maintenance, stay as it's a good deal. If you intend to move to another town, or have some kind of temporary living arrangement, renting is good. There is not "one size fit's all".

[@twister80]

If u r still holding that opinion then ur in the wrong channel bro

[@user-ex2yt1pl6u]

I wholeheartedly agree with you.

[@brandonbarclow3135]

If I had to do it over again, I would certainly rent. In the DFW market, owning is actually cheaper than renting in some areas, so there is really no "spread" to invest. The hidden costs of ownership is not worth it for me. I can rent a house in the same neighborhood without the headache. By the way...."investing" in a home that you live in is not an "investment." Investing in a home where you have tenants paying you monthly rent is an investment.

[@MDVEEJAZZ]

Depends on perspective.

[@mocamocam2258]

Wonderful point!

[@stjepanhauser7595]

Great video! I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@mathebulamkhize876]

@Freddy Carlier It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.

[@GregoryClark23]

Where are you renting a $400k house for $1,000. In Northeastern Ohio, a $400k house will rent for $2,500 conservatively. Thank you though.

[@Noadvantage246]

Yeah I thought that as well, I my area a few places actually cost more to rent than the mortgage would be, most are about even with VERY few renting for less than mortgage and even then it's like a hundred bucks or so definitely ain't 1k less.

[@MagnusMedina]

My thoughts exactly. Definitely not an apples-to-apples comparison here.

[@aaronjhouse]

I agree. This is no an accurate comparison. A person can buy a house for $150k and pay the same amount as a renter $1060.

[@raphaelwilliams2200]

I guess everyone in this section missed the 2060 monthly mortgage part................Chuckle

[@raphaelwilliams2200]

@@aaronjhouse psssssst...................................you missed something here i'll help you 2060 monthly mortgage @1:26

[@djsniper6364]

The landlord is going to adjust his rent for inflation too. That rent won't be at $1000 for 30 years.

[@DE-lt9kf]

True but so do taxes and insurance

[@PassportBrosBusinessClass]

D E Mortgage tax deductions

[@DE-lt9kf]

@@PassportBrosBusinessClass true but i wonder if home repairs cancel it out like new roofs appliances maintenance and other minor things add up.

[@kamilsultan1637]

@@PassportBrosBusinessClass The tax benefits go to those who own property or businesses.

[@danielleon5074]

GOATRODGERS12 You lose those tax deductions once you own the property outright

[@Privatericky1123]

I wish everyone a very successful life !

[@LeonardWalter-tq5jt]

I wish you too the best in life, talking about success ever since I started trading in bitcoin 📈 I have been moving higher and being successful

[@tylerthongchai3187]

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[@jamesthomas1724]

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[@michaelhart2408]

Currently people fail to understand that the rich keeps getting rich by spending low and making more investment

[@kelvinbrown8189]

Trading Bitcoin can be lucrative, even professional traders make losses on trade on a day to day basics

[@35biggie]

A few points that were left out of this equation are the upkeep of the home being financed. Roof repair/replace, heating and air unit repair/replace, hot water heater repair/replace, land taxes, lawn care, natural disasters like flood and fires, home bought in a good neighborhood that turns into a bad neighborhood 20 years later affecting the value of your home, and other unexpected situations that can happen when financing a home. All of this comes out of your pocket. The renter that invest wins hands down.

[@fallenkeith5885]

Still cheaper than renting though, especially when you can just pocket the difference and save / reinvest in keeping the house up. At least in my area the difference is 20%-30%+ between mortgage and rent. Also my main concern would be a roof, but there's a 25 year warranty out there for alot of companies, and HVAC isn't too bad and usually comes with a 5 year warranty, but often lasts way longer It also depends on where you live I guess. If you live in a HCOL / VHCOL area then it might be different

[@RingsideReporterLive]

​@@fallenkeith5885no it's not

[@KeithJones31]

There are so many hidden expenses in being a home owner.

[@kaywinter5821]

Yes!!!!!! I owned a home from 2012-2014 and loved having my own space but I learned ALOT that there are a lot of hidden expenses that comes along with being a home owner. I would do it over again now that I am more knowledgeable about the subject.

[@mannythompson8800]

Very true

[@KeithJones31]

Kay Winter I agree with you owning a home and having your own space is awesome.

[@teebone2157]

Renting is more expensive and you get no equity what's the point? Your mortgage is 500 for $600 a month near rent is 1100 a month for the same square footage and when it goes down hill like it is now for many renters you're out on your ass

[@TheUrbanAlien247]

@@teebone2157 I agree! I just never could fathom how renting is more sufficient than owning when you have nothing to show for it in the end. At least I can pass down real estate or leverage it when needed.

[@troywalker2833]

Yep, you’re right about being consistent when investing. People also don’t realize there ARE more expenses when you OWN a home, than just the monthly mortgage payment

[@MDVEEJAZZ]

Same applies to rent. People think they don't pay for property tax, insurance, repairs etc..when they rent, but they do. In fact, they pay a premium on top of it.

[@ricardomartinhodacruz]

@@MDVEEJAZZ mortgages still more expensive even with a premium wtvr that means

[@jonesmorales-tu6kq]

​@@MDVEEJAZZwrong

[@MDVEEJAZZ]

Expalin@@jonesmorales-tu6kq

[@LRF49]

​@@MDVEEJAZZNo it's not lol. I don't need to shit out $10k to get the roof changed. Especially when you live under rent control 😂

[@StopStrugglingNow]

I love this talk owning vs renting. Reminds me when my neighbors would say I bought my house for $700k and it's worth $850k, I would say, 'are you moving', cause unless you sell it, it's not worth $850k, even if you did, now where do you live for the same home? Here's the real deal no homeowner wants to talk about: $2060 x 360(30yrs) payments = $741,600 + $14k down = $755,600 which nobody seems to realize is what they paid. If home value is $1,141,000, home owner only has $400k in real profit. Not only that, you are locked in with mortgage only way out is to sell. If you lose your job, layoffs, sick, like in this pandemic you lose all monies paid toward home just like a renter unless you can sell it. Renter wins all metrics in R Fain scenario. Some will say rent prices go up, I say so does water/sewer/garbage, plus taxes AND everyone forgets about annual maintenance of their home approximately 1% of value per year depending on age of home/appliances/roof/etc. If you want to get deeper into it, the $400k in 30yrs is worth less than 30yrs ago.

[@quinnmurph2750]

Good point. Plus, a return of $400,000 after 30 years is not a great return. That's just $13,333 a year. You could make more than that in tips tending bar someplace, without any of the stress of owning a home. I think that Ricard's point, and the point of this comment, is that owning a home is not inherently a better financial choice than renting. If you're looking for financial returns (and not just the emotional and cultural reasons to own a home), the main thing is to run the numbers. Depending on time, place, and one's personal circumstances, it could be that your money is better invested in an index fund, or starting a business, over the same period of time. I've seen professional analyses like these now in both the USA and Canada, and 4x out of 5, the conclusion is that one comes out ahead from renting, not owning your primary residence. For instance, all of my friends who went from city apartments to buying homes ALSO ended up having to buy a car and spend money on less-obvious expenses like landscaping and replacing appliances. For them, the added expense of the car more than reduced their annual profit calculation by half. Run the numbers, don't assume that something is true just because it's what you've always heard. And as a general rule: if you can't afford to also put aside 15-20% of your income AFTER your housing costs are paid, you can't actually afford your home. You might own your home, but it could be cutting into your opportunities to diversify your investments and make even more money. Run the numbers.

[@StopStrugglingNow]

@Chris Royal right, mortgage holder paid for it. Let's not be ignorant. Actually many people do not realize the same thing you do with a home you can do with your investment portfolio. Just like you can borrow a homes equity, you can borrow portfolio equity. This is why banks have used asset lending such as stocks even fintech banks are starting to use crypto holdings you can borrow against.

[@marvinwalker363]

You can take equity out the house and also the house offers greater leverage against tax burden. Also he didn't mention rent increase.

[@iFanchi]

Where I come from the amount you pay for renting is almost always higher than a mortgage. Unless you rent a very small studio and the price for a studio is almost the same as a monthly mortgage. That’s only if you are single or just a couple. Having kids would make it impossible to live in a studio.

[@StopStrugglingNow]

@@marvinwalker363 inflation is rent increase, however, as a renter, do you pay the increased tax bills, water/sewer/garbage bills, plus maintenance of home as well? Homeowner and renter are subject to inflation, however more bills paid for a home are subject to inflation. As all cost are inflationary. Tax burden of stocks over 1yr is 15% capital gains, plus some deductions for investing. Home offers mortgage interest deduction which is now capped at a certain amount under trump. Capital Gains is manipulated for when selling and buying another home but you will still owe capital gains on the overage. So in his example, reality is even further the $400,000 profit after 360 months of payments and value of home. You will have to pay tax on $150,000 of the $400,000 as $250k may still be the max exemption. So the $400k profit is really like $380k.. Or could be worse, as again, usa citizens do not know what the tax rates or changes will happen 10, 20 or 30yrs from now just like the mortgage interest deduction scenario.

[@a334boy4u]

I have children. I want to leave them with something. Even if they decide they don’t care about the home they could rent it out.

[@acecardinal]

You can give your kids your stocks too.

[@geauxbosshawggo8694]

By them some land.

[@a334boy4u]

Ace Carinal good point thank you

[@a334boy4u]

Geaux Bosshawg Go! !! I will. Good idea

[@tiffanywilliams1470]

Same reason I WANT a house. Got a 19 AND 6 year old (don't ask no ?'s, was da 🕯light 😆). Life is too unsure & I want my kids as far as having a home to be COOL. I said the same, even if they don't wanna live in it they can rent it out & split it so they win either way. Want to have the house already paid off so all they have to keep up on are the bills & house insurance. Will be easier even if they need work done in the house cuz they won't have a mortgage. I'm praying God is getting me or things set in order 4 me to hopefully be able to do that.

[@WillMotivation]

Good video Richard. I lean on the side of ownership however because in most markets, renting typically will cost more per month than owning for the same sized house... So the left over money to invest would end up being the same, but the home owner has the advantage of the appreciation of that property as well as the fact that most people don't have the discipline to force that monthly savings, but with a mortgage, it's a forced way to build equity..

[@kenaddoh4693]

Completely agree! The argument to rent is based on the assumption that rents don’t increase and that all disposable income is invested....Having a mortgage generally puts you into a situation where you’re forced to hold on to an appreciating asset.

[@IamaNewCreature]

So rent in a different size house/apartment and invest the $ left over. With home ‘ownership’, you have to take shitty noisy neighbors, possible new high rise, mall or parking lot etc being built near by into consideration. Renting, you just take off if you don’t want to live there anymore. Also, it’s never really ‘your’ home, skip paying property tax and see what happens.

[@richbonesbone2659]

@@IamaNewCreature skip paying rent n see what happens. Same thing in general. Ownership is the key

[@someoneElse4229]

You can use a HELOC loan at low interest rate to purchase another rental property. Find tenants to pay off HELOC loan and mortgage for you, hire property management company to convert to passive income, rinse, wash, repeat to retirement.

[@marcj3757]

@@IamaNewCreature I own my house on land and the way my land is I won't ever have to worry about something being built next to me and as far as property tax in my state if you make it a small farm which doesn't require alot you can be exempt from property taxes. So what you said doesn't go for everyone. Free game!

[@BenjaminMutuku]

It depends on your personal goals. In my personal experience, based on geographic location, owning is better. Owning is sort of saving and investing. In 3 years, I’ve seen my equity rise to $100K+. And if I’d rented, I’d not have this equity. Furthermore, if I’d own 2 years earlier, I’d have $200K in equity. However, what you don’t want is to be house rich. And struggling to pay 💰 a big mortgage instead of renting. All in all, it depends on many factors.

[@FFGGuru]

To unlock it you would have to sell the house and move somewhere else though. Hard to make money on your primary residence

[@cyrusperkins9252]

You have to deduct expenses such as property taxes, insurance, maintenance. In most cases, its a bad investment to own home as primary residence that is why its excluded from your net worth.

[@MSotelo503]

I agree, I just did a Refi and locked the 2.8 MR and will use the money to buy my second home and rent my current home. All depends how you do it yall.

[@UnitedStatesofClips]

all nice and well if you dont lose the house lol!! housing crash happens. recesssion happens. like he said, renting and owning is good!! u have more leverage when owning tho!!!

[@tanoswag2849]

@@FFGGuru not true, HELOC can unlock the value to be invested elsewhere.

[@jamescoats9251]

Another thing about renting is you have a landlord that takes care of repairs if something breaks and it comes out of their pocket. Owning a home you have a mortgage and you have to foot the bill on repairs plus insurance and taxes. I know alot of people that have bought older houses and they never get ahead because their always dumping money for repairs on top of the mortgage. That cost alot more then just a rent payment. Another thing is is you can always go somewhere else and rent and not be tied to a house you can't get rid of and not get back out what you have invested. I'll never buy a house.

[@KaliElaine]

I love this concept. We are going to sell and become debt free. Rent and invest the rest untill we decide we actually can afford what we really want and actually be where we want to be.

[@tammys5417]

That makes sense to me. Godspeed

[@lifewitholliethegsp9203]

Never sell…. Rent it out. Get a HELOC. Never sell your properties

[@videolife101]

I really think the best strategy is to rent first until you develop more than one stream of income. Then buy a duplex and rent out the half you are not occupying. From there, continue to house hack like Richard did.

[@UnitedStatesofClips]

i like your strategy

[@mannythompson8800]

Smart!

[@quinnmurph2750]

This is a smart strategy. But most people will want to own for emotional reasons (like attaining the American dream) rather than cold, hard investing and calculation. I've always owned property but never owned the place where I lived, a strategy that has provided immeasurable emotional freedom to make more-creative investment decisions over time.

[@videolife101]

QUINN MURPH. The strategy isn’t for most people. There is a reason why those who are wealthy are considered the 1%. The strategy is for those who have made the commitment to building wealth. Emphasis on “commitment” because the average person prefers the quick and easy.

[@videolife101]

E L, everyone won’t. Just those committed to building wealth.

[@acraftman2823]

Frankly, I bought my previous house for 300k and put 60k sweat equity in it lived there for 7 years and sold it for 675k I bought a crappy house in a good neighborhood and the market was going up a lot.A recent check on zillow says my old house has appreciated 100k in two years and the buyers haven't done anything but rent it out. I kinda doubt you can rent a home for 30 years and keep the same rent rate.

[@DreamChaserAtlanta]

And option 3 would be to buy the home, stay in it for 2 years and then turn it into a rental property

[@XGamers]

It's better to rent in your early years as you invest. Then once you got a good portfolio in stocks, a business on hand, and maybe some real estate. That's when you go get your house.

[@monica62888]

This is my plan. Already started my business, have investment portfolios, now waiting for the right time to buy my first house flip investment.

[@kabelogumani528]

@@monica62888 I'm doing the same thing

[@Itsjustglo92]

I want to start doing this

[@ryans413]

I know people in there 50s that have rented all there life and are happy for some it’s no big deal others want there own place and I get it but some just fine to rent

[@One-12937]

Not everyone is smart enough to do that. It’s like saying if you’re homeless just buy a house with investments. Easy gg, all day.

[@HPGSLOTS]

The BIGGEST ISSUE that you are missing here is that in many states like mine (California) the Rent is HIGHER than the mortgage and this is just not accurate. Also the 2nd (1a) thing that you are missing is that the mortgage is a LOCKED IN RATE FOR THE ENTIRE 30 YEARS and the rent will fluctuate (high and lower but mostly higher). After about 10 years the renter will be paying more than the home owner which in turn will limit his/her investment power. So after 10 year the buyer will still be gaining equity while the renter in going in the hole. This whole entire argument is wrong for many reasons. Renting is essentially BURNING CASH. Over the last 30 years rents have tripled or more in some places. So you have to factor in inflation for all parties and you have to factor in the instability of rents and you also have to factor in the variety of rental markets. What would work for some in Michigan definitely won't work in California. So in my estimation, Buying is and always will be greater than renting. I don't care if 80% if your mortgage goes to interest, that's still 20% more equity each month than rent would be giving you. Imagine paying $2k for 5 years in rent ($124k) and getting absolutely NOTHING in return VS Paying that same $124k on a mortgage and selling your APPRECIATED $400k home after 5 years and $124k worth of payments with a $30k initial out of pocket for a total of $154k out of pocket for $480k (+ your coming out EVEN or at a small profit. You've just saved $124k over 5 years. Or something similar I'm doing the math in my head lol And let's not even being to add on the tax benefits that come with Home Ownership... $250k is you're single, $500k of you're married.

[@MultiMischiefMaker]

I disagree. I am a home owner. I bought my home 10 years ago. My original payment was $550.00 It goes up every year thanks to "Escrow" My payment now is $875.00 with NO IMPROVEMENTS made to the home. so the theory that rent goes up but house payment doesn't is false.

[@HPGSLOTS]

@@MultiMischiefMaker "Fixed Rate Mortgage" does not change over the life of your 15-30 year "FIXED RATE". Your taxes or insurance rates can change but your principal and interest will NEVER EVER change unless you refinance

[@danadane4375]

Rent is extremely high in Metro Atlanta and in a lot of other cities from the North to South to Midwest to West coast areas these Days . Extremely high! . Thanks for the info tho👍🏽

[@---Joy---]

@ HPG SLOTS (Hand Pay Gang) You're absolutely correct!!

[@KLAWNINETY]

owning a home is great if the market performs well, which it probably will for many years to come.

[@MagnusMedina]

Or better yet, buy a 2 - 4 unit apartment house and live in one of the units. Rent the others out. This is called house hacking. Your tenants pay your mortgage down and with rates as low as they are you'll probably end up cashflowing every month. Instead of paying for place to live you get paid for a place to live. I'm in the process of of doing this now.

[@djangomarine6658]

@Apollo Mayaimi If you house hack, you don't have roommates. You get monthly cash flow and asset appreciation. If you're smart and save the extra, you can do it again and again and end up with a passive income empire to retire on. Of course being a landlord is easier said than done.

[@djangomarine6658]

@Apollo Mayaimi I'm pretty sure I saw that video. Never rent without rental insurance. People can be azzholes. Yes, you're right, but you can hire a property manager for 10% of the rent. If the property still cash flows after that then you're on easy street.

[@djangomarine6658]

@Apollo Mayaimi True, but if you truly don't want to deal with your renters it's an option.

[@FuzzyPuppet]

ok the very first problem I see with this is that you cannot rent a home for $1,060 a month.... For that price you can't even rent an apartment on the bad side of town...

[@chiefdame]

great point but also i'm sure the rent wouldn't be $1,060.00 or any fixed amount for 30 years without any rent increases?

[@Jaymake]

This was just for example purposes. Don’t take the numbers too serious lol. Btw cost of rent all depends on the location. Some places have rent under 1000 in a great location. In big cities this obviously not the case.

[@SeaFlower38]

Great video...You've also got to take into account the home repairs, roof replacement, maintenance, etc when you own

[@rlchard9348]

Thanks for the review W•h•a•t•s•a•p m•e Plus one Eight Zero Three Six Five Eight Eight Six One Seven.

[@rlchard9348]

Hit me up directly for further assistance on earning

[@MDVEEJAZZ]

Yea, those cost are built into the rent. Hidden pretty well. The average person that rents has no idea they are paying for those expenses lol!

[@Jazz-fg2dm]

​ @MDVEEJAZZ You're wrong or just ignorant. Rents in general are significantly less than the actual operating costs of the properties. A landlord cannot charge you every cost simply because rents are limited by the incomes in your area. If a landlord raises the rent significantly, he or she will experience tenant vacancy.

[@tiffstipsreviews9733]

I'll take home ownership. I don't want to pay rent in retirement.

[@Ay-B]

Exactly! Trying to pay market rent with retirement funds is not good. I've seen lots of old folks struggle because they had to move and start paying market rent. My mom gets by on very little because she owns her home outright.

[@marshallkelly5769]

I'm not sure what sense it would make for someone over age 55 to get a 30 year mortgage with the other expenses that come with having a house

[@savannah328]

You meant you’ll spend 25 30 years + paying back a loan until you own the house ?

[@hope4me847]

@@savannah328 In most places, 15-30 paying mortgage which is less monthly than renting, or maybe she bought it flat out.

[@tiffstipsreviews9733]

Never that. Why wait 30 years to payoff something I can pay off in 8 years. So the bank can get all that interest BullS**t

[@chrisboyd4706]

Honestly I'm 29 years old and I just got my first apartment and to be honest I really like renting for now the best, but at first I was going to buy a house and the house payment would have been $850 a month meanwhile things fell through and I ended up renting a nice apartment with 2 bedrooms, a bathroom and a garage connected to me for $575 a month so now I have more cushioning to build up my credit and save to get me a brand new car of my dreams and save up for a house a really want years down the line so I'm happy for now

[@rlchard9348]

Thanks for the review W•h•a•t•s•a•p m•e Plus one Eight Zero Three Six Five Eight Eight Six One Seven

[@rlchard9348]

Hit me up directly for further assistance on earning

[@PerfumeSiren]

Im renting a townhome now, $1600/ month on our 1 year lease. Our lease just ended and to renew we would need to be paying $1750 now. I should mention they include heat and hot water. We only pay electric and internet (about $200 a month) Our offer just got accepted on a home that is a couple hundred sqft smaller than our townhouse, for 317k. Our monthly payment will be over 2k. That’s a 1,400 mortgage with property taxes, mortgage insurance, and home owners insurance. Not including heat, hot water, sewer, electric, etc. so we’re looking at nearly $2,500 for a home that’s smaller yet more expensive than what we are currently renting. Not to mention the yearly maintenance costs. We’re still in the inspection period and we are considering backing out. Doesn’t seem like a good choice but we’re still deciding

[@Jazz-fg2dm]

And?

[@mattstone8111]

Where I live rent is almost 2X what a mortgage would be. I can live in a house I own for $1,200/month yet renting a tiny ass apartment is $1,600/month and is rising 5% per year or more!

[@zmall6095]

Yes, its best to have home ownership in early years of employment. I was struggling trying to decide whether to buy or rent. At my age(65), its a no brainer. I could avoid all those extra expenses & invest in stock market in growth funds.

[@user-jt9su8ds7p]

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[@suzannejoshua9836]

I really love to Change location every 2 to 3 years. I do not want to stay in the same place forever. I love the scent of new house and freshness in newly developed properties. So, I prefer to rent for a substantial amount of years. And build my investment portfolio while enjoying leisure and travel. When I decide to settle down with a family, then I will purchase a house.

[@JayLawson]

Renting can be better for people who want to be able to move freely, understand compound interest and minimalist living who are willing to invest the difference consistenly, and people without families.

[@tony5969]

I lean towards renting myself for a variety of reasons . But my main concern about this example is that if you're choosing between a home with a $2,000 mortgage and a $1,000 apartment, there's likely a flaw in that apartment in terms of size, location or quality. It's more likely that a mid-range apartment in an equivalent cost of living area will run $1300-1500. So in that scenario you're saving $500-700; now that's still pretty good but it won't return the same amount in the examplw without adjusting for higher growth and risk. There's also the intangibles of whether you want to spend time (or pay others for) doing chores, establish a maintenance and repairs fund, and other eventual or unexpected expenses, how large of a family you expect to have etc. As for me, I'm relatively minimalist with no kids and am fortunate to be in a place where I can save the equivalent of a mortgage every month. But I realize that my lifestyle is an outlier. As Richard said in another video or two, don't feel you need to keep up with the Joneses. If it's about building equity, you don't need to be in the fanciest, newest, biggest home you can afford. That mortgage down payment can be liquid assets instead. Just my .02.

[@fvlok]

You base this on your crystal ball. (what the future brings) A house is not an investment. It’s your stability and it comes at a cost. I own my house outright as well as decent investments and since then, I have eliminated my largest expense, this opens me up for better opportunities and even taking on more risk/reward, and a place to sleep

[@royharper2003]

A house is not an investment? Most ignorant comment I have ever seen on KZbin.

[@Jazz-fg2dm]

@@royharper2003 It's not an investment because you live in it. If tomorrow you need 25k for urgent need, you can't take that money from your house (unless you sell your property completely probably with lost because you're in a hurry to sell). So it is at the very least a bad investment.

[@royharper2003]

@@Jazz-fg2dm Actually, you can get a home equity loan on your house and get that 25K.

[@rafaelw8115]

​ @royharper2003 >>you can get a home equity loan on your house 1) Home equity loans come with closing costs. 2) You’re turning something you own (your equity stake) into something you owe. In other words, you're putting yourself back deeper into debt. 3) You’re not building much equity during the first 15 years of your mortgage. Most of your mortgage payment are going to interest, taxes, and maintenance/repairs.

[@n64thebest82]

You're also forgetting about when the homeowner is mortgage free. Imagine how rough it would be worrying about getting thrown out by landlord or paying rent at 50 60 70 80 years old?

[@MarioHernandez-ci4cc]

That's why when you rent young you save, save invest in mutual funds. Buy stocks

[@n64thebest82]

@@MarioHernandez-ci4cc my mortage rate is only 2.625 thats pretty dirt cheap. not to mention my mortgage only is 944 with taxes and insurance. If I wanted to rent this house I would be paying 1600 at least a month.

[@ryans413]

That’s why you find good landlords

[@wilson8979]

Taxes, insurance and repairs maintenance upgrades….. home ownership costs above the mortgage. It ain’t cheap

[@SuperFalino]

Doesn't make sense Richard. You should have compared the $1060 rental to purchasing a $200k home and NOT $400K.

[@ChoicesMade696]

I was thinking the same thing.. if owning is $2000 mortgage... that means that same house will rent for more than $2000 at least $2250 to $2500... and the rented house probably have a mortgage of 500 to 800 bucks... not a good comparison in my opinion

[@rosannaann5563]

You can reach him on telegram @RichardDenisT

[@bennyblanco5366]

Yea technically....then because the Home will cost the same amount as rent lol

[@HMFTG]

This type of advice was made for someone 10 years ago, things have changed quite a bit economically.

[@stayunknown997]

Looks good on paper.. but thats not how it works.. rent will go up 30 time ( at least 2% every year )during that 30 year period and mortgage payment stays same throughout 30 years ( 30 year fixed mortgage ). Real estate Tax deduction is not included in the math ( only available for home owners ) Having a Free garage , backyard , a driveway to park car ( and work on it ) should all be counted in to mortgage payment + Hence the math is completely wrong 🛑

[@296jayce]

This is one case scenario, that doesnt apply everywhere. Where im at, renting costs more than owning, it really depends on where you are and who you are

[@tanoswag2849]

Agree. I made this point in a different comment

[@CYCLEGAMER1]

Same here...renting here is more or equal to paying a mortgage.

[@gtrain3]

People never include property taxes, closing costs, up keep costs, and commission fees when calculating the returns from your primary residence.

[@KS-wk6uk]

But when you purchase a house that’s $140k or less, the amount you pay in mortgage plus taxes and insurance is less than the amount you spend on rent alone.

[@modernadulting6857]

Renting a home can be an ideal option for those wanting extra flexibility and less responsibility. While buying a home can involve some serious saving and commitment, renting can help you maintain your flexibility and lifestyle.

[@tammys5417]

I’m all about this kinda life 😃.

[@Bythebartalk]

The only time renting is ok is if your constantly relocating, it’s way more perks to being a homeowner

[@SpeedyUsher]

Exactly!

[@orangeblock3792]

Says you. Speak on your particular situation, and leave the blanketed statements alone. Thx.

[@SpeedyUsher]

@@orangeblock3792 Cry me a river 😆😆

[@orangeblock3792]

@@SpeedyUsher No need to. I've got better things to do... now beat it.

[@SpeedyUsher]

@@orangeblock3792 Make me 😆

[@jhonn475]

Amazing. 💯...and also the damages and repairs the house may accumulated throughout time. Plus the day to day upkeep. The grass, the snow..if you renting rooms or basement the stress associated with dealing with that and people..etc.

[@PassportBrosBusinessClass]

WHY I OWN: #1 no one can tell me shit I can do ANYTHING I WANT AT ANY TIME. #2 Equity I earn by paying monthly. Why pay someone else’s mortgage??? #3. No one can tell me I have to move or they wanna raise rent. #4. Mortgage Tax deductions

[@jaimeknight7505]

Yep. Know someone who is stuck in their mortgage because they bought the house and the value STILL haven't recovered

[@jaimeknight7505]

And NO you CAN'T do whatever you want. Unless you're in the middle of nowhere.

[@wanjiruwarama2016]

For most people, and I mean most, owning a home is the best thing they can do. A home becomes a forced saving because many people live hand-to-mouth, no discipline to save money at all. P/S If I didn't own my house, there is no way I could afford the current rent.

[@Jazz-fg2dm]

Renting is cheaper than owning because rents in general are significantly less than the actual operating costs of the properties

[@ktborderline]

Big bro this is my favorite channel real talk .

[@Pablo-bo2ru]

Not to mention the renter doesn’t have to worry about maintaining, also the option to freely move whenever or wherever they would like.

[@KingOnema]

Thank you for the advice i was job battling with my wife with this question. Now we will watch this together (I've already watched but will pretend i didn't yet)

[@AnNguyen-vn4sy]

It is and will always be far better to own a home vs renting. Think about it, you can rent a room to offset the mortgage payment and live rent free while still be able to build equity. Now you have reserves being built in the property you live in for FREE and your job income vs renting. Now multiply the amount of rentals you own. This is why owning will always be better than renting.

[@mitchhills4747]

Rent is not always a waste of money. You have flexibility and some landlords encourage you to improve the property too. We live in a social rented house in the UK, which is a home for life. We have been there 20 years!

[@Min-Pins]

Renting where I live (Los Angeles) has been going up $100/month every year, so this way of thinking doesn’t apply to all of us 😞

[@alwaysready3319]

I agree Four years ago I rented a 2 bedroom for 1,395. I’m now paying 1,830 and new tenants are coming in paying 2,200. Every year in October we get notice that our rent is going up 100.00. I hate to see rent cost 10 years from now. SMH

[@cuauhtemocmorisco3493]

Now thats just insanity to the max...i mean one would have to be a lawyer or doctor to stay in LA. Who the hell makes 1k a month anyways? Surely every 2 weeks 1k is made but you'd be living broke after the next 2 weeks and then the month is over. Does anyone even save up in LA?

[@r.3559]

@@cuauhtemocmorisco3493 Frankly, no. We live in what my dad calls a 'gig economy' here. Unless you're an LA native or have a home that was passed down to you (separate from your own income), you have a very small chance of being able to make it out doing well in this city. Every friend I know (even ones with wealthy /connected parents) can't get a job after graduating from SC/UCLA and are working as interns (free lol), at a start-up for $15/hour, as a host, while side hustling as a door dasher. I live at home and I'm 2 years out of school because I'd rather save and invest my money for a year or two longer vs. sacrifice my income to have my independence and live with 5 roommates in a $3,000/month condo in West Hollywood lol. Since other factors like COVID are making employment harder as well, who knows if I'll be able to achieve what I want in the next few months...who the heck knows how people that don't have any base here are doing! :(

[@cuauhtemocmorisco3493]

@@r.3559 yeah this is also true. Thanks for the info. Been to LA once in my life and i will never be going back lol. Its too much for me. I like living in a small town without all the city lights and crazy traffic noises

[@iluvcakes19]

I must be the outlier. I live in LA and my rent HASN'T increased a dime.

[@Woke365]

Renting could never be better then owning. It all depends on how much the right cost and home home the home cost. Its about the price of the rental and the cost of house and property taxes. Some areas property taxes are very high.

[@amazingbroker1]

QUESTION: When you rent, who do you rent from? ANSWER: A home owner. Richard, on investing you said 'right behaviour with money'. Consistently investing with discipline is not easy for most people. The home owner during the 30 year stretch could refinance the home a few times and use the funds to acquire more homes or invest. I have taught many people to do this and their bottom line is way higher than if they just put the funds from renting into a financial vehicle. There is also the intrinsic value that comes with home ownership. I personally like to be in charge of my investment and my homes allows me to be in control. In the last 20 years I have grown my invested funds in home ownership more than 5 times what I could get from investing otherwise. Keep up the good work. Love your show.

[@SRTHOOLIGANX]

question, when you go sit at a restaurant do you just want whats on the menu? or are you trying to buy the entire restaurant? 🤔

[@KingDom2020]

Only thing is its assuming the renter lives in the same place for 30 years without the rent ever going up. Shoot he'll probably end up pay 3000 a month before the 30 years is up.

[@GrowWithWill]

The NY Times has a great calculator that breaks down this decision and whether it's better to rent or buy -- Richard does a good job outlining the often overlooked costs of owning here.

[@Leondon73]

Telling you to rent while he's in a house he owns. Buying is always better than renting if the numbers make sense.

[@mr.giraffe7076]

My main reasons for renting. 1. I can move close to work, move to new towns, and better jobs. If there is something I don't like about where I am living I can just move. It also gives you the freedom of taking jobs where you live on site or in the cab if you are a trucker. I suspect most homeowners did not take off to the bakken oil boom and stayed home. Missing out on tons of money and really good stories. 2. I am a minimalist. My rent has been as low as $150/mo. Its averaged around $400/mo most of my life. Looking at a $1700-2500 monthly payment makes me shake my head in disgust. 3. I hate doing house repairs, dealing with contractors, adjusters, and all the other BS. Nobody includes the constant labor it takes to maintain a house. The lawn, snow removal, the trees, the mulch, the carpets, the cleaning, the pipes, the vents, the driveway, repainting, buying new doors, new windows, new cabinets. The list never ends. As a renter I could actually get paid to mow the lawn (which would have made my rent $100/mo) I also got reduced rent for repainting window wells and staircases. 4. There is such a thing as being house broke. You have a house and a good car and you have no money to take care of anything. You struggle to even buy gas and groceries. --on a side note idk if they include mortgage insurance, home insurance, property taxes. --plus it seems like insurance barely covers anything. My grandma had to submit a claim on her $80k Florida trailer house and it costs her $32k for minor repairs after the insurance payout. --I also get free snow removal as a renter. Which snow removal can add up to thousands over 30 years. $50 a storm with 12 storms a season. That's $18k on snow removal alone. A service you get for free if you rent.

[@thenman23]

where do you live

[@hummingbirdman]

There are maintenance cost of 2% of the house per year, such as replacing the roof or pipe. So I dont know if the value of the house after 30 years is excluding some major repairs or not. Is the house still worth $1.141 million if the house needs a new roof, new plumbing, and termites eat up the house? Another factor is something like hurricanes, floods, earthquakes destroying your house. If insurance does not cover, you may lose your house.

[@timvibes]

My goal is to own a home, rent it out, and live with my cousins who won't charge me even close to $500 a month. Hard part is getting that down payment and renovation costs. Also finding the house in a sensible area.

[@illijah]

Loan amortization, appreciation, interest tax deductions & depreciation (straight line or bonus)…..ownership is a no brainer.

[@jamessnavely5089]

Hi Richard thanks for another great video. I am a renter for 9 years Ive invested in gold and silver and just started my roth I.R A 3 years ago I own my business called Dryer Pro I am getting ready to invest in the stock market and ready to keep growing my wealth for 20 more years.Everyone on my street is an owner so I feel looked down on at times but I always remind myselfI Im not stuck with 30 years of debt over my head and in the long haul I will have great wealth. Dont let other peoples opinions and judgements get in the way of staying positive and focused keep Investing.the world is yours go get it. JIm

[@clearvaluestax.8027]

Thanks for the review

[@atepatty6216]

I agree. I have been running numbers too these past few weeks. And looking into my projections and comparing mortgage repayments, tax paid, cash flow, equity and the like. Both ways is possible. Regardless which way you go, it is somehow depends on the lifestyle you are aiming for.

[@anthonypietrobono6178]

I'm with you Richard! I rent and invest the difference. One thing to factor in, would be rent increases over the 30 years. This would likely cause you to have to average 10% returns/year to out perform the owning scenario. Thanks for sharing my man! I appreciate you.

[@JohnDoe-fs6lz]

How’s it working out for you bud . Rent has sky rocketed even for a 1 bed

[@chrisdottery6116]

I’m a renter and a majority of the $400,000. homes that I see here in Florida are anywhere from 2,000- 2,600 monthly. Thank you for all your wisdom and I appreciate you!

[@Jazz-fg2dm]

Move to an area that you can afford.

[@cyberbar20]

I think you missed the part where at the end of 30 years, the homer owner will OWN a piece of property and the renter will not

[@yusufhasaan8781]

Owning is a no brainer. It just all depends on when you buy. Buy low sell high is the number 1 rule. I’m the current real estate market it’s the worst time to buy.

[@jameskarim8306]

Thanks for the review +1>>3>>0>>5>>59>>6>>2>>9>>5>> t>t>a>p>p>.

[@TrueJudah]

I love the security owning my primary residence provides - especially during times like these. Also the security of knowing I have a place to lay my head when I can no longer work. I saved and bought my primary residence in cash - never paid a penny in interest. Also I have an asset to pass along as an inheritance which renting will never provide.

[@---Joy---]

Very smart move, True Judah 1111.

[@Bij241J]

What happens if you lose your job is your job secured??

[@bahb00]

Add in home maintenance which includes expensive things like 3 roofs over 30 years and renting looks even better.

[@bparker4522]

People arent taking into account taxes or the upkeep of a house lol.

[@nathanaeljohnson4201]

Try renting in NYC, the amount you pay for rent is like a mortgage payment.

[@bkeith1853]

I decided to buy a home because in the NorthWest the rent is as much as ore more than a mortgage. You may be able to rent a one car garage with no plumbing for $1000 a month. A studio apartment on the bad side of town is $2000+

[@mrtt475]

I live in Los Angeles, rent is so high here, or equivalent to paying a home mortgage. My current mortgage is $2270.00 for a 3 bedroom home. My brother is paying $2400 for a 2 bedroom apartment.

[@DollarADay]

And your brother will most likely have to pay more in rent each year! You're payment will be the same as long as you has a 30 yr fixed rate mortgage!

[@tommycoe2333]

And your brother will have to pay to move, while you will get paid to move. Its a no brainer

[@richardbailey511]

Mr. Fain...man you're a huge asset and storehouse of vital investment information!!!! That's why you're so wealthy and blessed!!! Love this information

[@troywilson9639]

sometimes it boggles my mind why i can find such useful information for free at the comfort of my home but i learned 12 years of useless nonsense by waking up at the crack of dawn

[@jaedin716sw]

So true

[@colin6673]

Literally. School is the biggest load of nonsense ever

[@BoostedPastime]

@@colin6673 School trains you to be a slave.

[@IcyBandicoot]

Couldn’t agree more.

[@tommycoe2333]

This ain't good info, bro

[@JoeySavage]

Owning is better why cause when you rent and miss a payment you get evicted this is why I own car house must be owned not rented if you money falls you don t have to worry bout repo Man cause you own it.

[@Jazz-fg2dm]

You're talking nonsense. Tenants are more protected than you think. There's no one evicted for missing just one payment. Pure nonsense.

[@LandscapeMaster33]

This depends what part of the planet you live on. Where I’m from rent is most often more expensive then the landlords mortgage.

[@orangeblock3792]

I really appreciate the points made in this video. Everyone has to do what is beneficial for him/her. Not listen to YT commentary that believes one thing applies to ALL. It's asinine.

[@adamsclifford3332]

Buy gold and crypto 💯

[@lucasdiogodiego1902]

Bitcoin Trading is a lucrative way of making money

[@bravojonathan533]

I'm enjoying working under a platform that brings good gains in my life

[@bravojonathan533]

I've been making my weekly returns without stress all in crypto currency

[@alexlanderos2944]

Bitcoin investment might make you rich if you're a hedge fund with deep pockets or an unusually skilled currency trader but for the average retail trader rather than being an easy road to riches Bitcoin trading can be a rocky highway to enormous losses and potential penury

[@xabialonso2038]

Bitcoin investment is great unlike the stock market and other financial bitcoin has no centralized location since it's operates 24 hours a day in different parts of the world

[@kurtlomas4108]

The important part is he said the renter invest what he saves from not owning, that makes all the difference. Most people who rent aren't investing what the difference would be though.

[@kurtlomas4108]

I tried fam.

[@Noadvantage246]

The problem with this is it assumes 3 very unlikely things, 1.) You'll be renting for 1k less than the mortgage, in my experience and especially in my area that'll likely never happen. Most rents are actually more than it would be to mortgage. After all landlords want to cash flow or at least break even. 2.) Over the 30yrs your rent will never go up, again this is absurd most rents are raised annually but a mortgage is locked in. 3.) Assuming the first 2 very unlikely things happened the it's still unlikely the renter would studiously invest all the extra savings over such a long time period, we're all human and even the most savvy person will probably tap into that savings and spend at least 10% over 30. A mortgage forces your hand making you save and the equity in your house is much harder to liquidate than stocks.

[@dalaov5258]

everything goes up...land tax, house insurance, materials to repair/renovate, everything.

[@DLFfitness1]

It’s really about simplicity and freedom. Some houses go up substantially in value, while others do not. What does go up is your taxes, repairs and insurance. These days people compare homes with luxury apartments.

[@rlg222]

This is an interesting conversation. I can understand the basic math. I think the real two questions to consider is what the risk and options of both. I see a few good comments below. If look at statistical history, real-estate is still the better way to go here. You also have more options than renting. This was a good way to show you can still build wealth renting.

[@sandysimmer1279]

I live in Florida. I have had my home for 19 yrs. My mortgage has increased because taxes go higher every year now. Also, now that my home is 21 yrs old, everything needs replacing. The roof, air conditioner and air handler, water heater, etc. Even appliances, paint inside and out, flooring, fence around backyard. People forget those things when comparing renting to home ownership.

[@Thedudeofalltrades]

I think the important takeaway is getting away from "traditional" wisdom and understanding wealth creation. I would add that renting most of the time is going to be far better than Richard portrays. What he doesn't take into account is the (1) the maintenance of the home and over 30 years you're guaranteed to replace the roof, heating/cooling system, gutters, and the extra stuff you buy at Home Depot when its your home and the list goes on and on. I did a similar exercise and believe me, these costs add up BIG TIME. Borrowing from Rich Dad, Poor Dad,....your home doesn't put money in your pocket (Liability), if you take into account everything it takes out of your pocket, diligently investing over the long term is FAR FAR better than owning in most circumstances. I live in an expensive area of Northern California with ridiculous home prices and rates of appreciation and my analysis for the 16 years I've lived in my home showed very clearly I'd have more money if I rented and invested. The important point is understanding how money and wealth grow, not letting it determine every decision in your life. I don't regret buying my home because its given me so many great memories and a great quality of life and it made the wife happy!!! Happy wife, Happy life. On the flip side, if you invested the money and invested in dividend paying stocks and preferreds......you'd be making pretty good money off your portfolio to where you probably wouldn't have to sell and have to pay cap gains taxes. Great video Richard, and thank you.

[@n64thebest82]

When you own a home you will never get thrown out. You have no landlord telling you what to do. And every time you pay your mortgage money is getting put into basically a hidden savings account. Where I'm from anyway my mortgage is about $1100 with property tax and Insurance included if I wanted to rent a three-bedroom House nearby would cost $1600-2000 easily

[@bparker4522]

not true you can be thrown out haha

[@D.BeMe1]

I don't know where you live Richard, but in Cali rent is higher than mortgage. What you're teaching here is good, but it applies to a narrow market. The return on ownership is definitely worth it in different markets. A homeowner can leverage their home for a bigger investment with a larger return, and quicker.

[@terrymitchell4579]

This blew my mind Rich! Because I'm in Atlanta and every house I saw renting, the mortgage was twice as much for owning. But this open my eyes

[@sergiotisnado545]

Great stuff, Richard. However, where I live in CA, rent increases have been going through the roof (and has highest cap gains tax on the planet). So in my case, the homeowner wins with flying colors. Therefore, your model is location dependent, and would be the most valid in areas of the country where rent is remains stable.

[@marcr2204]

there are problems to renting as well. 1) the rent wont remain same it will keep going up and if you don't like the price then you keep moving to different places and that is pain full 2) the same space wont serve as the family grows as long as the personal situation remains same for 30 years then yes.

[@realfreedom8932]

With mortgage rates being so low, buying is a no brainer. I recommend a hybrid long term strategy.

[@josephwilson7937]

Mortgage rates are down but home prices are up your must look at the big picture.

[@IcyBandicoot]

Joseph Wilson what’s the big picture?

[@gravesg]

@@IcyBandicoot Home prices have to come down due to avg income not rising. The current market pricing is peaking and will crash sooner or later. The low-interest rates keep the market money moving ... but they can only go so low. 45% of renters in the U.S last month had trouble paying full rent. The big picture. If you're interested in property, stack your cash because when it crashes prices will be low and interest rates will be low. The man with money down will win a king's prize.

[@IcyBandicoot]

gravesg That makes sense. My man.

[@miqbad70]

In what city is rent $1075/month? In Houston, my rent was $200/month more than my mortgage. And comparing apples to apples, my house would cost $450 more per month to rent than to own. Then when you factor in the interest only payments I make every month, home ownership is way better than renting.

[@hihaters2004]

I wouldn’t own the multiple properties that I own if I didn’t own my own home 😂.

[@ideologicallyblindsighted7060]

Yeah, when you own multiple properties, you can rent most, so it's completely different :))

[@ideologicallyblindsighted7060]

@Truth Seeker 😂😂

[@VTWELV]

How did you own your 1st home through Mortgage right? There's more than one way of owning multiple homes buddy.

[@hihaters2004]

Twenty Twenty Vision In wouldn’t have earned the equity it took to buy multiple properties buddy.

[@spooler24]

I think you're OVER THINKING it... It's very simple, either way isn't wrong.. Both are investing avenues that require discipline... What if you did both??

[@scsmith4604]

I agree with this if you have a spouse who likes to redo rooms in the house or other massive maintenance projects every few years. This happened to me. Bought a home 8 years ago and since that time we have completely redone the landscaping, redesigned two bathrooms, redesigned the basement, and recently redid the kitchen. In all, we have added $220K in basis to the $400K purchase price on the house in an area where the comparables are now at $550K. We should have just rented a nice place. We have pulled out the equity and invested that in other real estate, but I get annoyed everytime I eat in the $80k kitchen.

[@SeanBrownIsHere]

Good video. I’ll take ownership over renting, though. Some folks are paying rent at the same price of a mortgage here in Los Angeles. Plus that rent goes up every year

[@kmgiroux]

Another thing to consider is it depends on where you live. A 400k home in Michigan metro Detroit area is gonna rent for around 2k. Doesnt leave a whole lot of difference in money for investing.

[@user-ex2yt1pl6u]

THE PERSONAL REASONS WHY I PREFER RENTING TO MORTGAGING A HOUSE SCALABILITY Renting encourages me to frequently evaluate my needs vs wants. For example, I often ask myself questions such as should I buy another TV for the bedroom or just invest the funds to continue building my net worth? This attribute helps me save money implicitly by occupying just the space I need at any given time and scaling up when I need to. A house is like a hard drive, in that no matter how big it is, given enough time, you will always find a way to fill it up. Outfitting a spare room (because you have it) costs money, and in most cases, the purchases would be wants as opposed to needs. FLEXIBILITY Renting gives me the option to go into a lease only if I am comfortable with it. I can choose to only go for rolling monthly contracts or leases with an appropriate get-out clause. And if a location stops making financial sense, I just leave, as per the contractual terms. Also, with renting I can quickly change locations to take advantage of career opportunities. This attribute made it possible for me to quickly relocate a while ago to take advantage of a fully-funded Cybersecurity PhD position in one of the top ten universities in the world. CERTAINTY The fixed nature of rent payments makes it easier for me to follow the ‘Pay Yourself First’ ideology as I do not have to worry about any taxes, maintenance, or other surprise bills related to living costs. This allows me to consistently invest a predetermined amount into index funds, bonds, or REITs monthly. The strategy is to go for competitive rentals that allow me to invest 50% of my income or at least an amount that is not lower than the monthly rent I am currently. This way I will always stay financially ahead, steadily securing that average annual 7% real return. PORTABILITY Renting and investing allows me to manage my investment portfolio from any location in the world with just an internet connection. DIY Given that I prefer to mind my own business, renting and investing allows me to manage my investments exactly how I want to, and I do not have to consult or work with anyone to do so. Furthermore, my investment portfolio makes it possible to reap the benefits of the real estate market through REIT funds without the accompanying hassle (and allied potential drama) of having to deal with tenants, property management agents and other parties. FREEDOM As an individual that values debt freedom and peace of mind above all else, renting and investing makes it possible to secure my future without being on the hook to the bank for decades. It is personally a more appealing strategy to live freely knowing that I can always cover my living expenses using the passive income generated from a healthy and heritable investment portfolio than to sign up for a loan that typically takes decades to repay. Also, renting and growing strong investments means that in my golden years, I can (without interacting with any form of mortgage debt) simply pay cash for a house and settle down - if I choose to. Having said that, always remember that there are many ways to achieve the same goal; 3 + 2 is equal to 5, but so is 4 + 1. So, do you and I will do me.

[@Sushi-Katana]

I prefer the free maintenance of renting. The only expenses I have to worry about are rent & utilities. If something breaks, its a free fix.

[@timothyripley4175]

After renting for as long as I have been. I wish I owned a house. Best part of owning a house is having something to sell

[@michaelm4597]

Yeah, but then you gotta buy another house in a sellers market.

[@ryans413]

True but that’s not always easy to sell especially when you still gotta pay a mortgage or even if it’s payed off you are still paying insurance utilities property taxes. Longer a home sits and not sells more your money gets wasted with renting you just leave nothing against you. There’s pros and cons to everything

[@kidnpigtogether]

Sell, key word. Let someone else babysit that problem. Less is more. Glad u sold.

[@c.m.1513]

@@ryans413 I been happy renting where if any repairs the Land Lord fixes it and am able to save a good amount of money per month because my rent is very low. Here in JAMAICA at my age if I was to try and get a monthly mortgage on a "starter home" it would be at least 3 times my current Rent!..plus finding downpayment..lawyer fees ..home insurance etc etc

[@ryans413]

@@c.m.1513 Yes and that’s my point sometimes renting is the right choice all depends on you and where you are in life. Everyone looks down on it like you gotta have a house. Here in Canada that’s everyone’s mind sets

[@TyDollla]

List rental properties on air bnb depending on location obviously. Stage home with furniture, then list on air bnb. Airbnb Money pays off rent you take left overs(profits). I have 4 rentals all uses as air bnb. While profits covers most of my mortgage of my living property.

[@404TRUCKERTV]

because this argument has been made incorrectly. using rediculous unrealistic points. I've bought houses for $30k put 15k in them and after they're fixed up they are worth $100k. you can't beat that by renting lol. its all how you buy, getting a mortgage won't work.

[@Bluetoad81]

yeah i believe this video is referring to houses and rentals that are a final product and at the same time not comparing a realistic mortgage : rental cost amount for sample area. where i live im finding a lot of houses for sale for 220k/240k on a nice piece of land ending up being a 800-1100 dollar mortgage , and a lot of potential, while only finding a few houses even available for rent most over 1500 a month. thats a lot of extra money monthly to go to a landlords pocket

[@404TRUCKERTV]

@@Bluetoad81 exactly. My personal home is worth about 150k 3b/2b, 1500sqft, very conservative mortgage on it. Taxes and ins $719mth. 4 paid for rentals worth about $100k each. Which is enough for me. The problem is we buy too much and have to many expenses. No one talks about that part. I will never take out a mortgage more than 100k for a property to live in.

[@doright8355]

Nice topic. 1. You forgot to adjust rent increases annually. 2. Renting. If you don't like your neighbor. You can move to a different room or move out with 30 days' notice. 3. If you rented for over 20 yrs. And the landlord kicks everyone out to demolish for new high rise. The landlord has to pay the renter between $10k-$50k. Based on how long rented live there. 4. With easy access to investing. Sell/ Buy Put in stocks option can return 2% to 4% weekly, compounding.

[@usaparaomundo7063]

You forgot that homeowners have water, landscape and other expenses like roof fixed and stuff. 🤔

[@Charlesbjtown]

You can do your own landscaping when you own your home. It's simple, buy a lawnmower and a few other pieces of equipment. And more and more rentals are charging for water btw.

[@robinhoodblack]

Great calculations, only problem is thats not the case in all markets, probably not even most. In Louisiana, Baton Rouge specifically, a median priced home is $100-200k and average rent is $1000 and mortgage will be probably less than half of rent. And for someone like me I'm looking into buying a multi-family with my first loan with the 3.5% down and house hack, rent out other unit which makes my home an asset and I live rent/mortgage free. Depending on how many units i may even see some pretty good cashflow also. Then after a year or so i will rent out the entire property and move into my own single family.