Banker Explains: Should You Buy or Rent in 2023?

Подписаться 51 тыс.

Просмотров 15 тыс.

50% 1

Deciding whether to rent or buy a house is a significant financial decision that depends on individual circumstances, preferences, and market conditions. Renting offers flexibility, lower upfront costs, and fewer maintenance responsibilities, making it an ideal choice for those with an uncertain future or limited savings. On the other hand, buying a house can be a long-term investment with potential appreciation, tax benefits, and the ability to build equity. Factors to consider include financial stability, location, duration of stay, and personal goals. Ultimately, choosing between renting and buying a house should be based on an individual's financial situation, lifestyle preferences, and long-term plans.
🏡 My All-in-One Property Deal Analyser
wtfpropertyinvesting.com/prop...
----
🤑 The Finance Apps I Use:
InvestEngine Stocks & Shares ISA
go.mattbrighton.co.uk/investe...
Get 12,000 free points with a no monthly fee American Express Rewards Credit Card
go.mattbrighton.co.uk/america...
Vanguard
www.vanguardinvestor.co.uk/
---
🧠 MY FREE COURSES
🏡 £0 - £100K - My Journey of Building a Property Business - go.mattbrighton.co.uk/0to100k
👨‍💻 How to Freelance on Fiverr - skl.sh/32qhXzb
🔎 SEO Rank Higher in Google - skl.sh/3j3gELP
---
MY GEAR
4K Camera - go.mattbrighton.co.uk/camera
Lens - go.mattbrighton.co.uk/lens
Shotgun Mic - go.mattbrighton.co.uk/mic
Audio Recorder - go.mattbrighton.co.uk/audiore...
Lighting - go.mattbrighton.co.uk/lighting
Tripod - go.mattbrighton.co.uk/tripod
Mic Boom Arm - go.mattbrighton.co.uk/micstand
Podcast Mic - go.mattbrighton.co.uk/podcastmic
Podcast Mic Stand - go.mattbrighton.co.uk/podcast...
USB Audio Interface - go.mattbrighton.co.uk/audioin...
Monitor Desk Arm - go.mattbrighton.co.uk/monitor...
Macbook Pro - go.mattbrighton.co.uk/macbookpro
Sony Headphones - go.mattbrighton.co.uk/headphones
1TB External SSD - go.mattbrighton.co.uk/ssd
Wireless Mouse - go.mattbrighton.co.uk/mouse
Wireless Keyboard - go.mattbrighton.co.uk/keyboard
MY SOFTWARE
📽️ RU-vid SEO - www.tubebuddy.com/mattbrighton
🎵 Background Music - mattbrighton.co.uk/epidemicsound
💻 Webhost - wtfpropertyinvesting.com/wpxh...
🖌️ Website Builder - go.mattbrighton.co.uk/elementor
🎨 Graphics & Visuals - wtfpropertyinvesting.com/canva
📚 Free Audible Book - go.mattbrighton.co.uk/audible
📨 Email List Builder - go.mattbrighton.co.uk/convertkit
STAY CONNECTED
☕ Buy me a coffee - www.buymeacoffee.com/mattbrig...
💌 Sign up to my email newsletter - wtfpropertyinvesting.com
🌍 My website / blog - propertyinvesting.io
📸 Instagram - / mattbrighton_
🐦 Twitter - / mattbrighton_
📘 Facebook - / wtfpropertyinvesting
WHO AM I:
I'm Matt, a senior product manager and property investor working Remotely for a VC-backed tech startup. I make videos about money, investing, tech and productively building a business.
GET IN TOUCH / BUSINESS:
If you’d like to talk, I’d love to hear from you. DM @mattbrighton_ on Instagram and I'll happily get back to you!
PS: Some of the links in this description are affiliate links that I get a small 'thank you' from, to help fund this channel. It also means you can get awesome deals with my affiliate partners! 😁
Timestamps
00:00 Intro
00:31 Buying a House: Example
02:16 Buying & Mortgage Costs Over Time
03:06 Rental Costs Over Time
04:18 Rent VS Buy: 25 Year Costs Explained & Explored
06:38 Factors To Consider When Renting VS Buying
08:54 Summary

Опубликовано:

1 июл 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 83

@MattBrighton Год назад

It's the ISA season! Open up a stocks and shares ISA with zero platform fees with InvestEngine go.mattbrighton.co.uk/investengine

@myafrosheen Год назад

The only part which doesn't get mentioned enough is that the renter can take that £25K which went towards the buyer's deposit and put that into the stock market to ride for the 25 years as well as investing monthly for those 25 years. I prefer buying but it's not entirely accurate to pretend that a renter can't also be growing their net worth during that same period

@ruiavelarsilva Год назад

Couldn't agree more. This analysis is not complete - I would welcome a video with the scenario of the renter investing the money. Also, if buyer buys a flat service charge + ground rent costs also applies which in cities like London could easily exceed £2k / year - service charge also increases with inflation.

@user-wg5bz1lo1p Год назад

Totally agree

@MattBrighton Год назад

This assumes the renter has the money in the first place to put into the stock market.

@ruiavelarsilva Год назад

@@MattBrighton If he has the money for the deposit + fees, why could (s)he not use the same money to invest?

@myafrosheen Год назад

@@MattBrighton but if this is rent vs buy isn't it about which one is the best choice if you have the deposit money to either rent or buy?

@cosmosnomad Год назад

I think there's a couple of things you missed out here; after you've paid your mortgage, you own it. After 25 years of rent, you own nothing. This means two things; 1) your property will continue to appreciate for however long you live. 2) if you rent, there's just more rent to pay.

@MattBrighton Год назад

This is very true :)

@CFoster223 Год назад

U also continue to pay more property taxes and insurance each year as the house appreciates, along with 1 percent maintenance fees a year the renter is flexible no liability and has the ability to move freely.

@skid69 8 месяцев назад

Maintenance is no way 5K a year, maintenence will be built into the rent so don't think you're not paying for it. £1169 month will seem like £1000/mth in a couple of years and seem like £500/mth in 10 years while your rent keeps going up. Landlord won't be interested in changing your kitchen if you fancy something newer or to your taste.

@FA9082 16 дней назад

THIS VIDEO IS TOTALLY WRONG ITS HILARIOUS 😂 1. Mortgage costs are not fixed over 25 years lol. Millions of people have seen their mortgage skyrocket aftter central banks increased interest rates 2. Matt completely missed out the fact that the renter can instead of buying a house put their deposit in the S&P 500 earning 10% a year compared to hoise growing by just 4% year (14% a year if you buy the Nasdaq 100 instead of S&P) 3. The amortisation on a mortgage is a NEGATIVE not a positive. If you take out a 90% LTV loan for 25 years then basically your house has to grow by about 3.6% pa before you make any money on it (3.6% = 90% x 1/25) 4. Matt forgot to mention inflation which around 3% pa. If houses grow by 4% pa but inflation is 3% ur really only making 1% pa at best, but with S&P500 you can make 7% pa after inflation

@Manisha-ce2jh Год назад

Thank you for making so many things clear for me x

@Gematria142 Год назад

Thanks for this video brother. Great information ☺️...

@aurelielefebvre1365 Год назад

Buying of house and selling is good, But trading is far better and more profitable.

@emryarmstrong6801 Год назад

Please I need someone to help me trade or invest the forex or crypto market because I'm tired of trading in losses myself. I've blown my account twice and it's frustrating. Just learn to work with Experts, ignore the bearish move of bitcoin currently.

@tommydrums7206 Год назад

@@emryarmstrong6801 I will always recommend Expert Nancy Hall to anyone who wishes to invest in forex/crypto trading, her strategy is working for me. I'm making good profits from bitcoin trading

@emryarmstrong6801 Год назад

@@tommydrums7206 Do you happen to know her contact info and /or willing to pass on her info? I'd really appreciate it.

@tommydrums7206 Год назад

@@emryarmstrong6801 Oh yeah She is always active on watap

@tommydrums7206 Год назад

@SaveMoneyOn Год назад

If I have the opportunity, I plan buying in 2024. Thanks for the advice 🙌

@Clauds71 9 месяцев назад

You’re so knowledgeable, thanks 😊

@RajR96 Год назад

Nice timing!

@GM-kt8rh Год назад

Rent = 1 huge monthly bill for the rest of your life! Mortgage = 1 huge bill for just 25 years or less. No brainer .

@robertjones2053 Год назад

More like 35 years. Also rent = no maintenance cost. Buy = might need a new roof etc.

@GM-kt8rh Год назад

@Robert R Jones lol, 35 years, if it takes you that long you're doing something seriously wrong, the mortgage payments become nothing over time due to inflation and eventually 0, rent will always go up, 800 -1k today 2k+pm in the future good luck to anyone facing that in retirement. Just had a roof done 4 years ago with upvc gutters etc for around 8k, won't need doing again and got the house for bmv due to required works so added value. Purchase cost 140k, full refurb Inc gardens around 90k yes it was a big job but just revalued at 310k-330k. It ain't easy, but no Mortgage now due renovating and making on each move over the years over paying etc etc. Mortgage everytime but some will never listen so 🤷 , they can always rent my next btl👍

@bobjames6622 Год назад

@@GM-kt8rh Totally agree with you. Long term renting is a total mugs game. Now short term renting, to ease the stress of selling a house, and then buying a new one without having to sell/buy at the same time can be a good idea. But renting for life? Thanks, but NO thanks!

@aidan9196 Год назад

If you are going to live in the same house for say 10 years or more it is always better to buy. Even the 2008 crash recovered values. Its when you need to move regularly that you are subject to market dips.

@MaximusAbrams Год назад

Great video, but I think there's room for more nuance. Individual circumstances matter, and it's important to consider fluctuating interest rates, the risk of no capital appreciation, and non-financial factors like emotional attachment. Also, more data or stats would be helpful to support the claims. Keep up the good work! 👍

@patpalloon Год назад

Biggest thing you have missed out is the security of owning your own home. You'll never be turfed out providing you meet mortgage payments. Renting however you can be asked to leave, rental market is furiously competitive - a third of rental properties gone in 4 years. It's not a nice place to be and owning your own home is much better.

@laurasmyth7302 Год назад

The transaction costs with buying for the average person are likely to be higher. Not applicable here but stamp duty for >250k + additional legal fees. These costs are not unsubstantial especially if you intend to sell in say

@paulhigginspkonb3820 Год назад

Did you count opportunity cost of the deposit? And did you balance the property value against inflation? Meaning, the ~150k gain isn’t really 150k after 25 years. AND, the big one, you have a liability, not an asset

@goonerinSP Год назад

I live in London because of my job but can't to afford to buy here. Do you think it's a good idea to buy to let somewhere, like the small town where I grew up in the east midlands? Does this make more sense? I would be a first time buyer.

@chriswelsh4397 Год назад

Absolutely makes sense 👍

@GeorgeAusters Год назад

We're first time buyers and our first interest payment was £140, capital was £360

@jonathanmcgovern2464 Год назад

With buying also mortgage insurance, home insurance, property tax.. And lifestyle inflation no one says waste of money but is when you own that grows as equity builds compared to renting.

@muraliMDR Год назад

Analysis is not full. Interest rate fluctuations. Look at current situation. Rent is 500 pounds less than mortgage for a 3 bed house as house prices are at peak. 5 percent rule applies to decide rent or buy. You didn't mentioned investing deposit money and investing money saved if rent is less than mortgage. It's an opinion, I might be wrong.

@squallleonhart470 Год назад

The flaw I see in this is the assumption that rent cost is same as mortgage cost. I would love to buy a £250k place in Glasgow but that same place is rented for £800 and not £1100 how much my mortgage would be.

@rikardsaje Год назад

A difficult comparison, one thing I did with my own house was to refinance and I bought a commercial property which pays the mortgage and some. You can't do that if you rent.

@paternoaparente2196 Год назад

I really appreciate the comparisons. Although: You missed the opportunity cost of the downpayment. On the other side, you missed the lower interest rates you will receive every time you remortgage with a higher LTV. Both would complicate things too much for a 10 minute video.

@FA9082 16 дней назад

@marwood9421 Год назад

2 key points were missed out here. One key point missed was the opportunity cost of the £30k deposit/sdlt/fees. If you pull even a 10% return over 25 years, you will be up to £325k. 2nd key point, renovation. Houses needs to be renovated every 10 years in order to hold market value, otherwise you can minus 10-20% of the price after 25 years depending how much TLC they will need.

@sheepczx Год назад

1. point yes, second no, there was a maintenance cost added, which is renovation.

@inc__8858 Год назад

10% yeild every year for 25 years. As if only it was that easy my friend. Negetive return on a row can compound you backward.

@MattBrighton Год назад

All true and too much to cover in a 10 min vid

@ThatGuyWierd Год назад

This is bolocks you won't get 10% and nobody with 30k cash saved is considering renting

@sheepczx Год назад

@@ThatGuyWierd only a rough landlord moved me away from renting, not everyone so sure to stay here for long enough for buying.

@heshamthearab Год назад

£416 a month, every month for the duration of ownership? Seems very unrealistic. Are you suggesting an annual rewire and biannual boiler replacement? Seems odd.

@alexandraost9331 Год назад

Service fees alone are approx 4500 a year.

@heshamthearab Год назад

@Alexandra Ost almost 80% of people live in freehold houses in the UK. They do not pay such fees. I understand that some do. But in this instance, to make it out like the average person is to budget 2% of the value of their home as maintaine and wear and tear on an annual basis is unrealistic and skews the equations. I own and have done for 13, i have lived in 3 properties over that time and I am yet to spend £5000 in maintenance.

@SkamGame Год назад

@@heshamthearab Are you telling me that you don't replace your roof every year?!

@bobjames6622 Год назад

@@alexandraost9331 That's a leasehold. Most property in the UK, apart from flats, are freehold. And leasehold is a form of rent as you will ALWAYS be paying service charges even when the mortgage is paid, plus you never actually own the land. Which is why leasehold is second only to renting as being a REALLY bad choice in terms of keeping a roof over your head.

@alexandraost9331 Год назад

@@bobjames6622 I am aware. Not many freehold options in London though.

@WhoIsWhatIDK 7 месяцев назад

Not having to pay rent when retired is a huge factor.

@orangeblue3531 10 месяцев назад

Hi Matt, I've been living in Asia for the last 20 years, and I'm planning to return to the UK. Should I buy or rent if I have enough cash to buy? Cheers!

@11Elevon 10 месяцев назад

Mate UK is at its all time high in living cost. If your circumstances allow I would advise you to steer away from UK for now..

@orangeblue3531 10 месяцев назад

@@11Elevon UK living cost is dirt cheap compared to Hong Kong. Take an essential item like milk. Even though it has gone up 50% in the UK in the past year it's still half the price of Hong Kong. On Tesco online it's about 1 pound 50p per litre. Here in HK it's 3 quid a litre. Petrol = 100 quid a tank in the UK. HK = 140 quid a tank. I'll take UK anyday over this hell.

@marie-louiseleroux828 Год назад

It is better to invest now," You will never be younger than you are today and there will never be a perfect time to invest. Due to compounding, which Einstein called the 8th wonder of the world, you can get rich slowly from investing if you do it from a young enough age.

@eric7782 Год назад

It is and will always be better to buy.

@dplreviewreview2406 8 месяцев назад

Renter can enjoying living in many different neighbourhoods giving them variety and pleasure

@SkamGame Год назад

There is one major factor that we don't seem to keep in mind.... politics, if/when Labour is in charge, there will be 100's of thousands of additional new builds popping up across the country, essentially stabilising the housing market and more rental regulations.

@SkamGame Год назад

@esemceX ignoring the reality of numbers rarely works out well

@bobjames6622 Год назад

Dream on, pal!

@dlc2479 Год назад

Labour isn't even in yet and there's already been a rental reform bill has some beneficial changes for renters

@FA9082 16 дней назад

THE CONCLUSIONS IN THIS VIDEO ARE TOTALLY WRONG 😂 1. Mortgage costs are not fixed over 25 years lol. Millions of people have seen their mortgage skyrocket aftter central banks increased interest rates 2. You completely missed out the fact that the renter can instead of buying a house put their deposit in the S&P 500 earning 10% a year compared to hoise growing by just 4% year (14% a year if you buy the Nasdaq 100 instead of S&P) 3. The amortisation on a mortgage is a NEGATIVE not a positive. If you take out a 90% LTV loan for 25 years then basically your house has to grow by about 3.6% pa before you make any money on it (3.6% = 90% x 1/25) 4. You forgot to mention inflation which around 3% pa. If houses grow by 4% pa but inflation is 3% ur really only making 1% pa at best, but with S&P500 you can make 7% pa after inflation

@ItsMe-co4bj Год назад

You’ll have made far more than £180k buying…….£416 a month in maintenance costs is absolutely ridiculous ! I thought you were more switched on than this.

@ryantan8666 Год назад

Really? A banker doesn't even mention the opportunity cost of capital?

@chriswelsh4397 Год назад

I have 4 buy to let properties, the income covers my rent. I live rent free ! Now just take a minute to think that through …. 🤔 😂

@ItsMe-co4bj Год назад

In theory this is fantastic but people always sell the most idealistic view point, if one or more of your properties become empty for a prolonged period you have to cover the bills on it. If one or more tenant decides to stop paying the rent you have to cover the bills on it. I’m sure you get my point at this point.

@chriswelsh4397 Год назад

@@ItsMe-co4bj oh dear ! Is my glass half full or half empty ??? Mine is half full and I can see your point … yours is half empty 🤦‍♂️ If one of my properties is empty for a period of time then the others pay for the empty one or I could take out an insurance to cover voids if I was that worried about it, which I’m not. If a tenant stops paying, I’m not responsible for the bills, they are for the time that they reside at that address.

@andy_xtr3861 Год назад

Lots of landlords are selling due to interest rate rise. Unless you fixed for 5 years just before the rise. Some losing money barely breaking even.

@joahern9449 Год назад

My mother in law done that’s one of her houses is falling apart and had to get rid of the tenant because the house is not safe and another tenant is leaving on of her other properties 😂