#40: Rent vs. Buy

Episode 40: Rent Vs. Buy One common mantra is that renting is throwing money away. Is that true? What are other things to consider? Top 5 takeaways: It’s easy to understand where the “Homeownership is the best answer” comes from: If you rent for 30 years, you have “nothing” to show for it. If you pay a mortgage for 30 years, you have a house. If you buy a $400k home, you can figure roughly $3k a month in the mortgage payment (including taxes and insurance) plus average maintenance costs. Rent for a similar property would be roughly $2k/month. In 30 years, if that $400k house appreciated 4% (which is high!), it would be worth $1.3 million. If, over that 30 years, that renter invested the $1k/month, 8% returns would be $1.36 mil. People who believe that buying a house is stupid often have a history of being burned (the number of people who believe that spiked in 2008-2009). When renting, you don’t have to pay an unexpected $40k because your roof is leaking. Renting affords you a LOT more flexibility than owning a house. Resources mentioned in this episode: FCN Podcast Episode #36: Life Insurance: The thunderdome throwdown! Launch Behind The Scenes webinar Want help building or growing a successful financial coaching business? Find resources below based on where you’re at in your journey: Deciding whether Financial Coaching is right for you? Join our free Facebook Community with over 5000 current and aspiring financial coaches! https://www.facebook.com/groups/financialcoachescommunity Already decided you’re going to be a Financial Coach and want to learn more? Get 30+ tips and best practices in our free 8-part email series! https://www.financialcoachesnetwork.com/pre-launch-email-series Ready to Launch your Financial Coaching business? Join FCN Launch, our step-by-step program that will help you successfully launch your business in four months and grow it to a consistent part-time income. https://www.financialcoachesnetwork.com/launch Are you already coaching clients and want to grow your business to a full-time income? Join FCN Grow, our program that helps you scale your business to a full-time income. https://www.financialcoachesnetwork.com/grow