Real Estate Investing Strategies: To RENT or To BUY ?!

Investment Strategies

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I made this video so that majority of people out here in the US or in any other country can decide to either rent or to own a property. It is a situation that comes into every person’s life at some point and I wish to help you all in deciding based on numbers and not just a hunch.

In this argument of whether you should buy or rent, the main components consist of.
1. Money | Looking at the deal in terms of dollar amount [Most important]
2. Assumptions we make while making the decision and if we can stick to the assumptions. Certain assumptions will drive the decision.
3. Quality of the deal in your life. Like how safe and secure is the location, is it easier for you to commute to your work from the location,. etc

When it comes to people who prefer buying over renting, you could hear them say that renting a property is just a waste of money and that you are basically paying landlords mortgage when you can pay your own. Instead, you should get a loan and pay the installments for the property, this way you would get to live in it and have an investment with an appraisal in the end.

While people who prefer renting over buying make an argument, that renting is way cheaper than investing in a property and that they can make a higher return on the money by investing in stocks or bonds or a different industry.

Honestly, it’s possible for a renter to end up with a larger net worth than someone who buys a home. But financially ownership has worked out better for most people over the long run and I will show you why that is the case as we move forward.

Let’s try and understand all of the arguments in terms of money, with the help of a model in excel. And get answers to the following.
1. Should we rent or buy a house?
2. Is renting a really waste of money?
3. How to do Real Estate investing using an excel model
4. How to do a Real Estate investment valuation

When you want to invest in property or real estate, you have to think long term. Home-ownership involves mortgage or home loans, so buying a house would make sense only in the long term. Renting can be beneficial in the short term.

#RentProperty #Mortgage #BuyProperty #ExcelModel #RealEstate #Investment #Finance

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