Housing Is Usually the Biggest Chunk of Your Budget. Don't Throw Money Away. Get the
There are many factors
that go into the decision to buy or rent a house. This webpage only considers the financial ramifications of
buying vs renting a house. To make a good decision, you need to understand the basics and then run the
The speaker in these
videos is Salman Khan, founder of the Khan Academy.
Many people will object since the premise is contrary to
conventional wisdom. So, all the variables are taken into account here. This detailed analysis is a
response to critics of the previous two videos. This video can be reached directly by using
this link and this link.
Buying vs Renting a House: Spreadsheet
The spreadsheet can be downloaded for free either from the Khan
Academy by clicking here or from this website by clicking this link: Buy vs Rent Spreadsheet. Download the file. Enter your numbers.
Make an informed decision.
Buying vs Renting a House: Conclusion
Buying a house is a huge commitment. Renting a house is a
big commitment too, if not quite so weighty. Sure, there are many factors that go into the buying vs
renting a house decision, so the financial aspect isn't all there is to it.
But, be sure to understand that the conventional wisdom ("you're
just throwing money away if you rent") isn't always the case. You may be throwing a lot more money away if
Financial wisdom includes how you handle what is probably the
biggest expenditure you have: housing. Make an informed decision. Then, move on to understand how
you can attain Financial Freedom.