Find out which one brings you the most benefit in long term! Buying or renting a home?
For a few months I was searching for various sources and calculators to determine if it would be worth for me buying a house instead of paying for my rent and I realised there are very few comprehensive answers.
There is the common wisdom saying buying is always cheaper but you can find out very quickly this is far from true.
After long research and validating (or disputing) theories and calculations I've created this website to serve as a quick, easy and understandable summary of all what I've learned by answering my own question:
Is it worth to buy a house or am I better keep renting?
Mortgage payment: of course a significant chunk of this is capital (principle) repayment but a big portion will be interest which is non recoverable.
Cost of ownership: a frequently forgotten aspect of buying a house is the inherent cost of owning it. Maintenance cost and property tax are the main items to calculate with.
Rent: a huge factor obviously is the price you pay for rent and not to forget about the yearly increase.
You can make a calculation by simply filling the buy and rent price and RentiBuy uses default values based on the country average and historical statistics.
RentiBuy takes into account all the various factors and summarises the result in a easily digestable format for you the make the most informed decision.
You can fine tune every parameter in the calculation making it your own as you prefer. Change the interest, deposit or the investment yield and see how much the results differ.
Ben Felix explain this rule in this video very well.
He provides an easy to understand explanation on how different factors play a role in making buying a house a great investment or a waste of money.
If you want to check for your own number use the calculator and see what the math shows.
Find the latest information about the topics of real estate market, useful tips about renting, mortgage and investing related to housing.
Check out these great books that covers the broad topic of stocks, real estate investments, property management, financial planning and even efficient negotiation techniques for a prosperous future.
Warrent Buffet shows us the eigth wonder of the world, compound interest, which is crucial to understand why renting can be cheaper than buying.
Howard Marks guides us with his insights on investing with historical references and lessons. If you seek to avoid the pitfalls of investing, you must read this book!
Make that bargain deal on your next home buying. A former international hostage negotiator for the FBI offers a new field-tested approach to high-stakes negotiations.