I have created the final Mortgage vs Rent Calculator, use it for your wealth!

Hi! Are you ready for a new in-depth look at the mortgage/rental dilemma?

In my previous post, we looked at the conflicting views between homeowners and renters. Landlords emphasize how renting is “throwing money away,” while renters argue that a house is not an investment at all or, indeed, is a bad investment. Today we will go further and talk about the pros and cons of buying or renting a house, but with a special twist.

We have already clarified a common myth: the indirect costs of the housing market are embedded in renting. This means that, one way or another, you will pay for real estate transactions, illiquidity, property taxes, repairs, maintenance, and so on. As a landlord, you will pay them directly; as a tenant, you will pay them indirectly through higher rent.

The choice between buying and renting depends very much on individual needs. In general, the argument can be summarized as follows:

Want more comfort and flexibility? Rent.
Looking for a way to save money and invest in the long term? Buy.
However, there are other details to consider as well.

Purchase a home:

• You do not anticipate changing jobs in the near future or being relocated.
• You prefer to avoid rent negotiations or concerns about a change of ownership.
• You already have a home, perhaps an inheritance, and selling it and renting would cost more.
• In your country, mortgage costs are tax-deductible, and you could also deduct renovation costs.

Renting a house:

• You are often on the road and don’t think you can rent your home on platforms such as Airbnb during your absences.
• In your country, rental costs are tax deductible.
• You are not sure if you want to stay in your current location for at least 5 years.
  Rental yields are low in your area.
• You are looking for predictable cash flows.

In conclusion, the choice between buying or renting a house is very personal and depends on your circumstances and goals. In my case, I intend to stay in renting as long as I have opportunities for professional growth, after which I will look for a place to relax during my retirement. I hope by that time I will be financially independent!

New addition: The Mortgage vs. Rent Calculator

To make the decision between mortgage and renting even clearer, I have created a special calculator that will help you determine which option might be better for you. You can find it on my site below this post and in the new section “Calculators”.

Continue to explore the world of personal finances and the choice between buying and renting, as there is no universal answer. It is important to consider your long-term goals and personal circumstances before making a decision. If you have additional questions or need further advice, please don’t hesitate to ask!

In this exploration between mortgage and renting, we shed light on the pros and cons of both options. It is a decision that goes beyond the mere financial aspect, as it depends on your personal needs, financial situation and future prospects.

Remember, there is no right or wrong answer. However, to make this decision even more informed, I have provided you with a valuable tool: our Mortgage vs. Rent Calculator. This tool will allow you to enter your financial and personal information and get a clear perspective on which option might be best for you.

So, take your time, use the calculator, and make a choice based on hard data. In the end, whether you choose mortgage or rent, remember that your home is the haven where you will create precious memories. Whether you are a landlord or a renter, the important thing is that it is the place where you truly feel at home.

Keep following my blog for more tips on financial management and the path to financial independence. And remember, regardless of your choice, the main goal is to achieve financial stability and create the future you want. Good luck!