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Of Rent on , 20  Form

Of Rent on , 20 Form

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Instructions and help about Of Rent On , 20

- I have talked about the decision around renting versus buying a home before. But in this video I wanted to take a bit of a different angle. The common perception is that if you can purchase a home with a mortgage payment that is equal to or less than what you would otherwise pay in rent then buying is a good decision. This way of thinking about the rent versus buy decision is extremely flawed. Comparing a mortgage payment to rent is not an apples to apples comparison. In order to properly assess the rent versus buy decision, we need to compare the total unrecoverable costs of renting to the total unrecoverable costs of owning. That may sound like a complicated task but I have boiled it down to a simple calculation. I'm Ben Felix, portfolio manager at PWL Capital. In this episode of "Common Sense Investing" I'm going to give you a simple way to think about the rent versus buy decision. (upbeat music) Before we get to the 5% rule, I need to lay out the

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