London: Why Buying Isn't Better Than Renting
The most common financial misconception I hear is that people think buying a property is always better than renting. Here I analyze a real-life example of buying versus renting a property and determine which option makes the most financial sense. I also point out the factors you need to consider depending on the country you live in , and I discuss more arguments for and against buying. If you're interested in the full calculation, you will like this!
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TIMESTAMPS:
00:00 Myths
01:31 Psychological drivers
02:13 About me
02:38 Important to note
03:16 The 5% rule from Ben Felix - what's missing
04:02 Considerations where you live
05:54 My current rental situation
06:27 Real life example - London
08:15 Buying cashflows
10:25 Renting cashflows
11:31 Comparing the 2 scenarios
13:44 What does it look like after 25 years?
15:58 At which point does buying make sense?
17:15 Country-specific considerations
18:59 Choosing outlier examples
20:23 Arguments for and against buying
SOURCES and REFERENCES:
Ben Felix video showing 5% rule: • Renting vs. Buying a Home: The 5% Rule
UK housing price and rental price indices: www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/may2024
Rightmove: www.rightmove.co.uk/
Barclays mortgage calculator: https://www.barclays.co.uk/mortgages/...
DISCLAIMER:
This content is only for educational purposes and should not be considered personalized investment or tax advice. Capital is at risk when investing and historic performance is not indicative of future performance. Do your own research before investing. Accuracy is not guaranteed.