Business
To rent or to buy… the age old question A lot of millennials have stopped asking the question because they feel buying real estate is far out of reach. And on top of that, there’s so much societal pressure that suggests renting is burning cash, and owning real estate is like a right of passage for adulthood. I debunk both of these myths. Personal finance is.. Personal. Buying or renting is a conscious decision that shouldn’t be taken lightly.Buying real estate can be a great tool for wealth, but if buying is out of reach, or you’re living in a highly overvalued market, renting and investing the difference, when done strategically can pay massive dividends… literally, like if you invest an amount equal to a downpayment in dividend paying stocks.There’s a lot of costs associated with buying outside just saving for a downpayment. There’s mortgage payments, transaction costs, interest….In this episode I break down common misconceptions, and quantify exactly what the criteria is to be approved for a mortgage. I break down how to save for a downpayment, how long it’ll take in specific markets assuming you are saving 10% of your income monthly.I dive into different scenarios and show you where it makes more financial sense to rent vs. buy, and how to run the calculations.Here’s what I get into: 4:53 - Rent vs. buying situations10:00 - How to save for a downpayment11:52 - How mortgages are calculated17:28 - GDS and TDS ratios26:07 - Building Equity27:46 - Price-to-Rent ratio33:43 - Opportunity costHousing Affordability NBC✩ CONNECT WITH ME: ✩Instagram: @missfindependentTikTok: @nikafarbLearn more at missfindependent.comFor contact or business inquiries: media@missfindependent.com